Multiple Choice

A MANAGER’S DILEMMA

31. Which of the following best describes the challenge facing gazoontite.com according to
the company profile in “A Manager’s Dilemma?”
a. persuading investors to initially invest in the company
b. deciding which products to sell on the company’s website
c. determining what to do to keep the business growing (moderate)
d. persuading investors to invest additional funds in the company

32. According to the company profile in “A Manager’s Dilemma,” which of the following
describes the primary products of gazoontite.com?
a. automobiles
b. high-tech products
c. books and videos
d. hypo allergenic products (easy)

WHAT IS PLANNING?

33. ______________ is a process that involves defining the organization's objectives or

goals, establishing strategy, and developing a hierarchy of plans.
a. Managing
b. Informal planning
c. Leading
d. MBO
e. Planning (easy)

34. Which of the following is not a part of the definition of organizational planning?
a. defining the organization's goals and objectives
b. evaluating the organizations outcomes (moderate)
c. developing a comprehensive hierarchy of plans to integrate and coordinate
activities
d. establishing an overall strategy for achieving the organization's goals
e. it is concerned with both ends and means

35. Formal planning involves which of the following aspects?

a. developing general objectives
b. planning for up to one year
c. writing objectives (moderate)
d. distributing the plan to all managerial employees
e. carrying out the goals as each manager thinks is best

WHY DO MANAGERS PLAN?

36. One purpose of planning is that it minimizes ______________ and ______________.

a. cost; time
b. time; personnel needs
c. waste; redundancy (difficult)
d. time; waste
e. mistakes; cost
37. Planning's effect on managers is that it forces them to do which of the following?
a. react to change
b. consider the impact of change (moderate)
c. respond indiscriminately
d. plan on overlapping different activities
e. develop bureaucratic response models

38. What does the evidence suggest about organizations that plan compared to
organizations that do not plan?
a. Planning organizations always outperform nonplanning organizations.
b. Nonplanning organizations always outperform planning organizations.
c. Planning organizations generally outperform nonplanning organizations
(easy)
d. Nonplanning organizations generally outperform planning organizations.
e. They generally perform at about the same level.

39. The ______________ of the planning process contributes more to high performance
than does the ______________ of planning.
a. quality; implementation
b. implementation; quality
c. quality; extent (difficult)
d. extent; implementation
e. implementation; extent

40. Which of the following is a factor that constrains high performance in planning
organizations?
a. quality
b. extent
c. implementation
d. environment (moderate)
e. informality

41. Environmental issues, such as government regulations and labor unions, tend to have
what kind of effect on the value of planning on organizational performance?
a. They tend to increase organizational value because they serve as screens for bad
plans.
b. There is no real effect.
c. They have a positive effect on large organizations and a negative effect on small
organizations.
d. They decrease the organizational value by constraining management's
options. (difficult)
e. They have a positive effect in public institutions and a negative effect in private
organizations.

42. According to the text, organizations need at least _____________ of systematic formal
planning before performance is impacted.
a. one
b. two
c. three
d. four (difficult)
e. five

HOW DO MANAGERS PLAN?

43. _______________ is often called the primary management function because it
establishes the basis for all the other functions that managers perform.
a. Planning (moderate)
b. Leading
c. Organizing
d. Controlling
e. Persuading

44. Based on the information presented in the text, _____________ are desired outcomes
for individuals, groups, or entire organizations.
a. strategies
b. goals (moderate)
c. plans
d. policies
e. procedures

45. Which of the following is the foundation of planning?

a. employees
b. goals (easy)
c. outcomes
d. computers
e. the planning department

46. According to the text, _____________ are documents that outline how goals are going
to be met and which typically describe resource allocations, schedules, and other
necessary actions to accomplish the goals.
a. strategies
b. goals
c. plans (moderate)
d. policies
e. procedures

47. In order to be successful, an organization should follow what advice concerning

objectives?
a. Develop a single, well-designed goal.
b. A long-term vision of objectives is critical.
c. Organizations should have multiple objectives. (moderate)
d. Obtain non subjective opinions from consultants.
e. Changing objectives leads to employee dissatisfaction.

48. Official statements of what an organization says, and what it wants its various
stakeholders to believe are referred to as ______________.
a. real goals.
b. stated goals (moderate)
c. committed goals
d. comprehensive goals
e. expanded goals

49. According to the text, which of the following goals can be found in an organization’s
charter, annual report, public relations announcements, or in public statements made by
managers?
a. real goals.
b. committed goals
c. comprehensive goals
d. stated goals (moderate)
 e. expanded goals

50. Which of the following is true concerning an organization's stated objectives?

a. They issue identical objectives to all constituents.
b. Organizations typically have internal and external sets of objectives.
c. They may issue different objectives to stockholders, customers, employees,
and the public.
(moderate)
d. It is illegal to issue conflicting stated objectives.
e. Stated objectives are usually in line with short-term actions.
51. ______________ are often conflicting and excessively influenced by what society
believes organizations should do.
a. Real goals.
b. Committed goals
c. Stated goals (moderate)
d. Comprehensive goals
e. Expanded goals

52. Which of the following statements depicts the reality concerning stated and real
organizational objectives?
a. They are usually identical.
b. They both reflect the official purposes of the organization.
c. They are often quite different from each other. (easy)
d. Real objectives are based on what the audience wants to hear.
e. Stated objectives can be understood by observing member actions.

53. According to the text, those goals that an organization actually pursues are called
______________.
a. Real goals. (moderate)
b. Committed goals
c. Stated goals
d. Comprehensive goals
e. Expanded goals

54. What should a person do to understand what are the real objectives of the organization?
a. observe organizational member actions (moderate)
b. attend a stockholders annual meeting
c. read their statement of purpose
d. read their annual report
e. watch television news reports

55. An organization that states, "People are our most valuable asset," and then proceeds to
lay off 20% of its work force, has revealed its ______________ objective.
a. real (easy)
b. imagined
c. fictional
d. human resource
e. unplanned

56. When we categorize plans as being strategic versus operational, we are describing them
by their ______________.
a. breadth. (moderate)
b. specificity.
c. frequency of use.
d. depth.
e. time frame.

57. When we categorize plans as short-term versus long-term we are referring to their
_____________.
a. breadth.
b. specificity.
c. frequency of use.
d. depth.
e. time frame. (easy)
58. When we categorize plans as being directional versus specific, we are categorizing
them by ______________.
a. breadth.
b. specificity. (easy)
c. frequency of use.
d. depth.
e. time frame.

59. When we categorize plans as being single-use versus standing, we categorize them by
______________.
a. breadth.
b. specificity.
c. frequency of use. (easy)
d. depth.
e. time frame.

60. According to the text, ______________ can be described as long term, directional, and
single use.
a. operational
b. long-term
c. strategic (easy)
d. specific
e. directional

61. Based on the information presented in the text, ______________ are short term,
specific, and standing.
a. operational (moderate)
b. long-term
c. strategic
d. specific
e. directional

62. Plans that apply to the entire organization, establish the organization's overall
objectives, and seek to position the organization in terms of its environment are called
______________ plans.
a. operational
b. long-term
c. strategic (easy)
d. specific
e. directional

63. Plans that specify the details of how the overall objectives are to be achieved are called
______________ plans.
a. specific
b. directional
c. long-term
d. operational (easy)
e. strategic

64. ______________ plans include the formulation of objectives, whereas

______________ plans assume the existence of objectives.
a. Single-use; standing
b. Directional; specific
c. Long-term; short-term
d. Strategic; operational (difficult)
e. Informal; formal
65. The three identified differences between strategic and operational plans are
______________.
a. time frame, cost, and organizational age.
b. cost, organizational age, and number of planners.
c. scope, time frame, and inclusion of a known set of organizational objectives.
(difficult)
d. inclusion of a known set of organizational objectives, cost, and number of planners.
e. organizational age, cost, and scope.

66. Which of the following types of plans tend to cover short periods such as monthly,
weekly, and day-to-day?
a. operational (easy)
b. long-term
c. strategic
d. specific
e. directional

67. An organizational plan that has a 6-year time frame would be considered what type of
plan?
a. operational
b. short-term
c. strategic
d. intermediate
e. long-term (moderate)

68. Strategic plans tend to include a time period of usually ______________.

a. 1 year.
b. 1-3 years.
c. 3 years or more. (moderate)
d. 5 years or more.
e. at least 10 years.

69. What type of plan covers less than one year?

a. operational
b. directional
c. short-term (easy)
d. long-term
e. strategic

70. According to the text, ______________ are plans that are clearly defined and which
leave no room for interpretation.
a. strategic
b. single-use
c. short-term
d. specific (moderate)
e. standing

71. Compared to directional plans, what type of plan has clearly defined objectives?
a. strategic
b. single-use
c. short-term
d. specific (moderate)
e. standing
72. A state legislative plan that calls for a 2.45% increase in tobacco sales tax for the next 2
years would be considered what type of plan?
a. Strategic
b. Operational
c. Specific (moderate)
d. Directional
e. Standing

73. Directional plans do which of the following?

a. have clearly defined objectives
b. identify general guidelines (moderate)
c. meet the needs of a unique situation
d. last for 3-5 years
e. provide guidance for activities repeatedly performed in the organization

74. According to the text, ______________ provide focus but do not lock managers into
specific goals or courses of action.
a. strategic
b. single-use
c. directional (moderate)
d. specific
e. standing

75. The greater the environmental uncertainty, the more plans need to be ______________
and emphasis placed on the __________.
a. strategic; long-term
b. single-use; short-term
c. operational; long-term
d. directional; short-term (moderate)
e. standing; long-term

76. Planning accuracy with a high degree of environmental change tends to produce which
of the following results?
a. Planning accuracy is likely.
b. Planning accuracy becomes much more important.
c. Planning accuracy becomes less important.
d. Planning accuracy is less likely. (moderate)
e. Planning accuracy occurs in the long-run.

77. A manager in the computer software industry should display what type of attitude
concerning planning?
a. She should remain fixed on set plans.
b. She should be flexible. (difficult)
c. She should focus on long-term plans.
d. She should increase the focus on minute details.
e. She should concentrate on operational plans.

78. A ______________ plan is a one-time plan designed to meet the needs of a unique
situation and created in response to nonprogrammed decisions that managers make.
a. single-use (easy)
b. short-term
c. directional
d. standing
e. strategic
79. A small town's preparation for a visit by the President of the United States would be
considered what type of plan?
a. strategic
b. directional
c. standing
d. long-term
e. single-use (moderate)

80. Which of the following is true concerning standing plans?

a. They provide guidance for activities repeatedly performed in the organization.
b. They provide guidance for 1-3 years.
c. They identify general guidelines. (moderate)
d. They are specifically designed to meet the needs of a unique situation.
e. They establish the organization's overall direction.

81. A city's policy concerning skateboarding on downtown sidewalks providing guidance

for police action would be considered what type of plan?
a. standing (difficult)
b. contingency
c. directional
d. single-use
e. strategic

82. According to the text, ______________plans include policies, rules, and procedures.
a. single-use
b. standing (moderate)
c. strategic
d. specific
e. informal

83. A corporation's sexual harassment policy is an example of a(n) ______________ plan.

a. single-use
b. standing (moderate)
c. strategic
d. specific
e. informal

84. Where in the organizational hierarchy are traditional goals determined?

a. front-line employees
b. team leaders
c. lower-level managers
d. middle managers
e. top managers (moderate)

85. The central theme in traditional goal setting has which of the following assumptions?
a. Front-line workers know their product.
b. Middle managers know what is best and serve as the liaison between upper
management and front-line workers.
c. Objectives should be determined in a democratic process.
d. Top management has the "big picture." (easy)
e. Committees comprised of top management, middle management, and front-line
staff set the best objectives.
86. Which of the following is an example of a traditional goal?
a. Increase sales by 5%.
b. Be the market leader in the southwest region. (difficult)
c. Gain 10% market share.
d. Achieve break-even costs by the end of next quarter.
e. Decrease labor costs to 38% cost of goods sold.

87. What happens to traditional goals as they make their way down from top management
to lower levels?
a. They lose clarity and unity. (moderate)
b. They unite the work force.
c. Lower-level managers must continually revise and correct them.
d. They purposely remain vague and non-specific.
e. They become more broad and general.

88. Which of the following is another term for an integrated network of objectives?
a. strategic objectives
b. reality-based linkage
c. means-ends chain (moderate)
d. operating systems connection
e. circular enhancement

89. A management system in which specific performance goals are jointly determined by
employees and their managers is known as ______________.
a. management by objectives. (moderate)
b. means-ends chain.
c. traditional goal setting.
d. management by opinions.

90. In the Management By Objectives (MBO) system ______________.

a. objectives are determined by management.
b. goals are only reviewed at the time of completion.
c. goals are used as controls.
d. progress is periodically reviewed. (moderate)
e. objectives are determined by subordinates and their supervisors.

91. Which of the following is not one of the four common elements of Management By
Objectives (MBO)?
a. goal specificity
b. participative decision-making
c. an explicit time period
d. a systems loop (difficult)
e. performance feedback

92. The appeal of Management By Objectives (MBO) lies in its emphasis on converting
overall objectives into ______________ objectives for organizational units and
individual members.
a. company-wide
b. effective
c. stated
d. real
e. specific (easy)
93. Management By Objectives (MBO) can be described by which of the following
statements?
a. an autocratic system
b. a "bottom up" system
c. a "top down" system
d. both a "top down" and a "bottom up" system (difficult)
e. a static system

94. All of the following are mentioned in the text as characteristics of well-designed goals
EXCEPT:
a. measurable and quantifiable.
b. clear as to a time frame.
c. written in terms of actions, rather than outcomes. (difficult)
d. communicated to all necessary organizational members.
e. written down.

95. Three contingency factors cited by your text that affect planning are level in the
organization, length of future commitments, and ______________.
a. risk aversion of management.
b. employee satisfaction.
c. level of productivity.
d. educational level of managers.
e. degree of environmental uncertainty. (moderate)

96. Generally, operational planning dominates the planning efforts of what level in the
organization?
a. front-line staff
b. senior front-line staff
c. lower-level managers (moderate)
d. middle-level managers
e. upper-level managers

97. As managers move up the organizational hierarchy, their planning role tends to become
oriented with what type of planning?
a. strategic (moderate)
b. directional
c. single-use
d. operational
e. standing

98. The ______________ concept sates that plans should extend far enough to see through
current commitments.
a. commitment (easy)
b. formality
c. opportunity
d. S.W.O.T.
e. MBO

99. According to the text, the traditional approach to planning was that it was done entirely
by ______________.
a. supervisors.
b. lower-level managers.
c. mid-level managers.
d. top managers (moderate)
e. outside consultants
100. A ______________ is a group of planning specialists whose sole responsibility was
helping to write the various organizational plans.
a. informal planning department
b. formal planning department (easy)
c. quality circle
d. problem solving team

101. All of the following are mentioned in the text as primary arguments directed at formal
planning EXCEPT:
a. plans can’t be developed for a dynamic environment.
b. formal plans can’t replace intuition and creativity.
c. planning focuses managers’ attention on today’s competition not on tomorrow’s
survival.
d. plans may create too much flexibility. (difficult)
e. formal planning reinforces success, which may lead to failure.

CONTEMPORARY ISSUES IN PLANNING

102. Which of the following is a criticism of planning?

a. Planning creates too much flexibility.
b. Plans can't be developed for a static environment.
c. Formal plans may replace intuition and creativity.
d. Planning focuses mangers' attentions on today's competition not on
tomorrow's survival.
(moderate)
e. The costs of planning are generally larger than the benefits.

MANAGING IN AN E-BUSINESS WORLD

103. According to the boxed feature, “Managing in an E-Business World,” plans for Internet
companies are often revised ______________.
a. weekly (moderate)
b. annually
c. every 3 years
d. every 5 years

104. Organizational hierarchies in Internet firms tend to be ______________ based on the

information presented in the boxed feature, “Managing in an E-Business World.”
a. tall
b. flat (moderate)
c. round
d. square

105. According to the boxed feature, “Managing in an E-Business World,” probably the
biggest change for planning in e-business is that ______________.
a. the environment is more stable.
b. customers are calling the shots. (moderate)
c. employees are making the demands.
d. only a few competitors exist.
Scenarios

WHAT IS PLANNING?

It's Academic (Scenario)

You are the Academic Dean for a small liberal arts college and your president has asked you
to develop a plan for the college. He wants a plan covering the next five years and he wants it
to be as specific as possible yet not overly constrain flexibility. The president states that he
wants the plan to be accurate so as not to waste time and so you will be well positioned for
the future.

106. Which of the following is not associated with developing your organizational plan?
a. defining the organization's goals
b. establishing an overall strategy for achieving goals
c. staying with a single, comprehensive plan
d. concern about ends; what is to be done (moderate)
e. concern about means; how it is to be done

107. The fact that your plan will have specific objectives covering a period of years, along
with action plans means this could be described as a ______________ plan.
a. contractual
b. formal (moderate)
c. defined
d. standard
e. objective

108. Which of the following is not one of the purposes for which your boss asked you to
develop a plan?
a. providing direction
b. reducing the impact of change
c. minimizing waste
d. increasing redundancy (moderate)
e. setting control standards

109. Your boss wants this plan to be very valuable to the organization. You are aware of the
overall value of planning in organizations and tell him ______________.
a. organizations that plan always outperform those who do not.
b. formal planning has little long-term association with higher profits.
c. the extent of planning is more important than the process.
d. the environment may restrict higher performance. (difficult)
e. overall, there is a neutral relationship between planning and performance.

110. Concerning the impact of planning on organizational change, you need to tell your
president that planning has what kind of effect?
a. forces managers to look at the present
b. forces managers to anticipate change (easy)
c. managers can't really consider the impact of change
d. planing increases uncertainty
e. planning confuses management action in response to change
HOW DO MANAGERS PLAN?

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 something that will cover the next three years only, knowing that business
needs change somewhat frequently. Your goal is to write something that provides direction
but does not contain extremely defined objectives.

111. The fact that you are writing your plan covering three years means that your plan is
most consistent with what type of plan?
a. specific
b. long-term
c. operational
d. standard
e. strategic (moderate)

112. You are writing your plan covering the entire organization. This is a factor most
consistent with what type of plan?
a. specific
b. long-term
c. standard
d. operational
e. strategic (moderate)

113. If your plan detailed how overall objectives were to be carried out, it would be
considered a(n) ______________ plan.
a. operational (moderate)
b. specific
c. strategic
d. detailed
e. micro

114. What could be said about your plan if it turns out to be inaccurate?
a. It was a waste of time.
b. The end result is the only truly important result.
c. Inaccurate planning is of use for establishing direction.
d. The planning process can be valuable. (moderate)
e. Inaccurate planning maximizes wasted effort.

115. Referring to Table 7.2, if your plan was written to last only the current year, it would be
considered a ______________ plan.
a. short-term (moderate)
b. long-term
c. directional
d. specific
e. focused
Planning Factors (Scenario)

As vice-president of a local manufacturer, you are interested in developing a new

organizational plan. However, you are unsure about several factors. You are not sure who you
should assign to the varying planning tasks, and there are several other issues pending, such
as the potential formation of a union for employees and rising interest rates. You also have to
consider that you have contracts with large vendors that extend five years into the future and
there has been enormous investment into overseas expansion scheduled to take place in the
next four years.

116. For the most part, you should assign the operational planning activities to
a. line staff.
b. high-performing line staff.
c. lower-level managers. (moderate)
d. middle managers.
e. upper-level managers.

117. You should probably assign yourself and other top executives to help develop the
______________ plan.
a. operational
b. specific
c. overall
d. financial
e. strategic (moderate)

118. The fact that there is a threat of unionization and interest rates are rising suggests that
the plans need to be ______________.
a. specific.
b. directional. (difficult)
c. focused.
d. objective.
e. absolute.

119. The fact that there are environmental uncertainties, such as the threat of unionization
and rising interest rates, means that the emphasis should be placed ______________.
a. on the long term.
b. on lowering risk.
c. on the short term. (difficult)
d. on writing specific objectives.
e. on enhancing measurability of outcomes.

120. The length of time that this plan should cover should be at least ______________ years.
a. two
b. three
c. four
d. five (difficult)
e. ten