Chapter 5: Planning and Decision Making
TRUE/FALSE
1. S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely.
2. Strategic plans specify how a company will use resources, budgets, and people to accomplish specific
goals within its strategic objective.
3. The process of decision making emphasizes the use of systematic procedures to arrive at optimal
solutions.
4. Both absolute comparisons and relative comparisons are methods for identifying decision criteria.
5. Because it is a time-consuming, labor-intensive, and expensive process, the Delphi technique is best
reserved for important long-term issues and problems.
MULTIPLE CHOICE
1. Managers can monitor __________ to track progress toward goal achievement.
a.
action plans and their implementation
b.
proximal and distal goals
c.
one-way and two-way evaluative techniques
d.
framing and non-framing goals
e.
open-ended and close-ended techniques
2. Top management is responsible for developing long-term:
a.
standing plans
b.
tactical plans
c.
operational plans
d.
strategic plans
e.
mission statements
3. Management by objectives (MBO) is a management technique often used to develop and carry
out_______plans.
a.
single-use
b.
standing
c.
operational
d.
tactical
e.
hierarchical
4. Which of the following is the most specific type of standing plan?
a.
policies
b.
procedures
c.
rules and regulations
d.
forecasts
e.
MBO plans
5. One method of weighting decision criteria uses ______, which is a process where each decision
criterion is compared directly to every other criterion.
a.
absolute comparisons
b.
relative comparisons
c.
valences
d.
minimum threshold rule
e.
comparative ranking scales
6. As mangers try to take a rational approach to decision making, they must contend with bounded
rationality, which means they are restricted by:
a.
real-world constraints
b.
benchmarking
c.
methodology validity
d.
information overload
e.
all of these
7. Which of the following statements explains why groups can produce better solutions than individuals
in decision-making situations?
a.
Formal groups have no group norms.
b.
Groups cannot experience information overload.
c.
Groups become committed to solutions they help choose.
d.
Groups take additional time to carefully evaluate all options.
e.
All of these are reasons why groups can produce better solutions than individuals in a
decision-making situation.