Management, 14e (Robbins/Coulter)
Chapter 8 Planning Work Activities
1) ________ involves defining the organization’s goals, establishing strategies for achieving
those goals, and developing plans to integrate and coordinate work activities.
A) Execution
B) Logistics
C) Planning
D) Operations
2) The effect of planning on managers is that it forces them to ________.
A) generate higher profits
B) anticipate and respond to change
C) eliminate uncertainty
D) work at cross purposes
3) Which one of the following is among the reasons why managers should plan?
A) When work activities are coordinated around plans, inefficiencies become obvious.
B) Uncertainty can be eliminated and the organization can be insulated from change with
planning.
C) Planning eliminates the need to set goals.
D) Planning eliminates the need to measure work effort.
4) Which one of the following is true of the impact of formal planning on organizational
performance?
A) Formal planning is associated with positive financial results.
B) Organizations that formally plan invariably outperform those that don’t plan.
C) The amount of planning done is more important to high performance than the quality of
planning and implementation.
D) Companies can start seeing the impact of formal planning on performance about a year after
starting the planning process.
5) When formal planning fails to lead to higher performance, which one of the following is most
likely to be the reason for the failure?
A) A participative style of planning was used.
B) Managers were allowed too much autonomy.
C) The company emphasized the control function over other functions.
D) External forces constrain managers’ options.
6) Planning is concerned with how objectives are to be accomplished, not what is to be
accomplished.
7) Planning provides direction to managers and non-managers alike.
8) The presence of planning inhibits the ability of departments and individuals to work together
or organizations to move.
9) Planning helps managers eliminate uncertainty and insulates organizations from change.
10) Several research studies have conclusively proven that planning organizations always
outperform non-planning organizations.
11) Studies indicate that doing a good job planning and implementing those plans play a bigger
part in high performance than does how much planning is done.
12) In a short essay, define planning and discuss the characteristics of formal planning as it is
used in various organizations.
13) 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?
14) Discuss the impact of planning on organizational performance.
15) Which aspect of planning refers to documents that outline how results are to be achieved?
A) goals
B) plans
C) objectives
D) performance guidelines
16) Goals are different from plans because ________.
A) goals identify specific steps that the organization needs to achieve, and plans identify the
overall mission of the organization
B) goals describe financial objectives, and plans describe objectives related to social
responsibility
C) goals are important only for small companies, and plans are important only for large
companies
D) goals are desired outcomes, and plans describe how those outcomes will be accomplished
17) Which one of the following statements is true regarding an organization’s goals?
A) All organizations share the single goal of making profits.
B) A single goal is more efficient than multiple goals for defining an organization’s success.
C) Using a single goal such as profit may result in unethical behaviors by employees.
D) Long-term success is ensured if managers emphasize only one goal for an organization.
18) Most companies’ goals can be classified as either ________ or ________.
A) strategic; financial
B) operational; tactical
C) social; economic
D) strategic; operational
19) 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 ________.
A) a strategic plan
B) a directional plan
C) a financial goal
D) a strategic goal
20) Nike, Inc. is a sportswear and equipment manufacturer that serves a multitude of sports
disciplines. Which one of the following statements from Nike would be the best example of a
strategic goal?
A) a ten percent increase in average annual sales
B) a seven percent increase in average annual income
C) achieving a return on investment of 17 percent
D) accelerating growth through focused execution
21) Robert Downs, owner of a new community newspaper in his home town of Corning, New
York, has set the following goal for his company: “To be a champion for free speech and for the
development of the community.” This goal constitutes the ________ goal of the company.
A) informal
B) operational
C) financial
D) strategic
22) An organization’s ________ goals are official statements of what an organization says, and
what it wants its stakeholders to believe its goals are.
A) stated
B) real
C) authentic
D) implicit
23) When making editorial decisions for his newspaper, the owner/editor mostly picks issues that
are in line with his political beliefs and those that his advertisers approve of despite his publicly
stated goal “to be a champion for free speech and for the development of the community.” This
indicates that ________.
A) the company’s strategic goals do not leave any room for interpretation
B) the company’s stated goals are not its real goals
C) the company’s goals are directional in nature
D) the company’s financial goals derive from its strategic goals
24) Which one of the following is the best indicator of an organization’s real goals?
A) organizational members’ actions
B) mission statement
C) annual reports
D) stock valuation
25) An organization’s mission states that it “is committed to reducing its environmental
footprint”; but its facilities do not comply with statutory environmental regulations. This is an
instance of how ________.
A) strategic goals help shape financial goals
B) long-term goals differ from short-term goals
C) an organizations stated goals need not be its real goals
D) a company’s real goals are derived from its mission statement
26) Organizational plans can be classified on the basis of their ________.
A) usefulness
B) frequency of use
C) suitability
D) attainability
27) Strategic plans are usually ________.
A) short term, directional, and standing
B) short term, specific, and standing
C) long term, directional, and single use
D) long term, specific, and standing
28) ________ plans apply to the entire organization and establish the organization’s overall
goals.
A) Departmental
B) Strategic
C) Operational
D) Long-term
29) Operational plans are usually ________.
A) short term, directional, and standing
B) short term, specific, and standing
C) long term, directional, and single use
D) long term, specific, and standing
30) Plans that encompass only the production or the sales goals of a company are termed
________ plans.
A) operational
B) strategic
C) informal
D) financial
31) Mr. Slabaugh wants to formulate a plan that lays out general guidelines for his employees
and leaves room for interpretation. Which one of the following types of plans would best suit his
requirement?
A) informal
B) specific
C) directional
D) standing
32) Williamson is the owner of a small company that sells corporate gifts through an online
store. Business has slowed down in recent months and he realizes that the organization must
move in a different direction if it is to survive. He has reset some of the company’s overall goals
and wants to develop a plan to achieve those goals. He is anticipating the business environment
to be volatile for the next few years. Considering the above information, it can be determined
that his plan must be ________, ________, and ________.
A) operational; directional; rigid
B) informal; unwritten; flexible
C) strategic; general; rigid
D) strategic; directional; flexible
33) Which one of the following factors has contributed to the decline in the number of years used
to define short-term and long-term plans?
A) environmental uncertainty
B) economic recessions
C) flattened organizational structures
D) stagnant business conditions
34) Long-term plans are defined as those with a time frame beyond ________.
A) seven years
B) one year
C) five years
D) three years
35) Short-term plans are those covering ________ or less.
A) three years
B) one year
C) six months
D) five years
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36) ________ plans are clearly defined and leave no room for interpretation.
A) Directional
B) Stated
C) Long-term
D) Specific
37) Todd Miller, CEO of Miller’s Grocery, has determined that all stores should be well
maintained both inside and out. This is an example of a ________.
A) directional plan
B) specific plan
C) financial goal
D) social goal
38) What plans are preferable when uncertainty is high in the business environment?
A) standing plans
B) directional plans
C) operational plans
D) long-term plans
39) Which of the following is an example of a single-use plan?
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
40) A standing plan is ________.
A) an ongoing plan that provides guidance for activities performed repeatedly
B) a plan that stands in place of a preferred plan in case of the failure of the latter
C) a one-time plan specifically designed to meet the needs of a unique situation
D) a flexible plan that sets out general guidelines for company strategy
41) Which one of the following is an example of a standing plan?
A) a retail chain’s plan to counter the entry of a new competitor
B) a plan developed to address a sudden, unanticipated surge in demand
C) a fire escape policy establishing practices to be followed in an emergency
D) a plan to cope with radical changes in the political environment
42) Which one of the following would be a well-written goal for an online retailer operating in a
volatile business environment?
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.
43) As managers plan, they develop both goals and plans.
44) Most businesses have only the single goal of making profits.
45) Strategic goals focus exclusively on the financial performance of the organization.
46) Stated goals are those that an organization actually pursues.
47) The number of years used to define short-term and long-term plans has increased
considerably because of the greater environmental certainty businesses have today.
48) Long-term plans are those with a time frame beyond three years.
49) Short-term plans are those covering one year or less.
50) When uncertainty is high and managers must be flexible in order to respond to unexpected
changes, directional plans are preferable.
51) Directional plans are clearly defined and leave no room for interpretation.
52) The standard procedure to be followed by the human resources department of a company
when initiating disciplinary action against an employee is an example of a standing plan.
53) Distinguish between the stated and the real goals of an organization. Illustrate the difference
with an example.