Chapter 7—Managerial Planning and Goal Setting
TRUE/FALSE
1. Managers must understand no plan is perfect, but should grow and change to meet new conditions.
2. A desired future state that the individual or organization attempts to realize is a goal.
3. Goals specify today’s means; plans specify future ends.
4. Planning is the act of determining the organization goals and the means for achieving them.
5. Planning cannot tame a turbulent environment.
6. A plan tells “why” to achieve the goal.
7. The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and
operational level.
8. Defining operational goals and plans occurs in the execution phase of the organizational planning
process.
9. Tactical goals and plans are the responsibility of front-line managers and supervisors.
10. Operational plans and goals are those that focus on the outcomes that major divisions and departments
must achieve in order for the organization to reach its overall goals.
11. Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part
of the company’s strategy.
12. A broad definition of the organization’s values, aspiration and reason for being, along with a
recognition of the scope and operations that distinguishes the organization refers to a Business Plan.
13. Goals and plans provide a sense of direction and focus on specific targets and direct employee efforts
toward important outcomes.
14. Tactical goals are specific, measurable results expected from departments, work groups, and
individuals within the organization.
15. Top managers make the broad strategic plan and identify specific tactical plans.
16. Operational planning specifies plans for department managers, supervisors, and individual employees.
17. Goals are typically stated in quantitative terms.
18. Providing innovative solutions to customer needs is a goal that would be placed in the internal
business process category on a strategy map.
19. A visual representation of the key drivers of an organization’s success and shows how specific goals
and plans in each area are linked is called a strategy map.
20. An organization’s mission describes its reason for existence.
21. Building good relationships with suppliers and partners would be considered internal business process
goals.
22. Strategic plans and goals are those that focus on where the organization wants to be in the future and
pertain to the organization as a whole.
23. Management by objectives, single-use plans, and standing plans are all management planning
approaches.
24. Goals are most effective when they are specific, measurable, challenging and linked to rewards.
25. Goals must be set for every aspect of employee behavior for organizational performance to be
effective.
26. In order for goals to be effective, they should be challenging but realistic.
27. Step 1 in Management by Objectives is to review progress.
28. An action plan defines the course of action needed to achieve the stated goals.
29. Managers believe they are better oriented toward goal achievement when MBO is used.
30. In step 1 of Management By Objectives, overall performance is appraised.
31. A key benefit of management by objectives is that it aligns individual and departmental goals with
company goals.
32. Standing plans define company responses to specific situations such as natural emergencies or
competitive setbacks.
33. A major difference between rules and policies is that rules are broad in scope whereas policies are
narrow in scope.
34. The goals should be easy, for employees to feel motivated, so that they can achieve them easily which
in turn increases their motivation level.
35. Three critical planning methods are contingency planning, building scenarios, and crisis planning.
36. One of the biggest benefits of planning is that, in turbulent environments, plans create greater
organizational flexibility.
37. Plans provide a standard of assessment.
38. If Renae, manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she
would need to look at factors such as new equipment, the economy, and the company workers’
compensation cases.
39. In a complex and competitive business world, traditional planning done by a select few is the only
planning that works.
40. Crisis plans define company responses to be taken in the case of emergencies, setbacks, or unexpected
conditions.
41. Some firms engage in crisis planning to enable them to cope with unexpected events that are so sudden
and devastating that they have the potential to destroy the organization.
42. Prevention and preparation are the two stages of crisis management.
43. The ABC Corporation should create a crisis management group that is not cross-functional, but does
work together well under pressure.
44. The CEO of Andre’s Autos, Inc. must do all of the planning for the company because that is the way to
do things in today’s workplace.
45. Trend management is looking at trends and discontinuities and imagining possible alternative futures.
46. In centralized planning, managers at all levels work with planning experts to develop their own goals
and plans.
47. Managers work with planning experts to develop their own goals and plans in decentralized planning.
48. Stretch goals are typically so far beyond the current levels that people have to be innovative to find
ways to reach them.
49. Sales in relation to targets is an example of a balanced scorecard metric.
50. Intelligence teams are useful when an organization confronts a major intelligence challenge.
MULTIPLE CHOICE
1. _____ refers to a desired future state that an organization attempts to realize.
a.
Plan
b.
Vision statement
c.
Goal
d.
Mission statement
e.
Idea
2. A blueprint specifying the resource allocations schedules, and other actions necessary for attaining
goals is referred to as a(n) _____.
a.
goal
b.
plan
c.
mission
d.
vision
e.
objective
3. Of the strategic management functions, which is considered the most fundamental?
a.
Executing
b.
Analyzing
c.
Controlling
d.
Planning
e.
Leading
4. _____ is the act of determining the organization’s goals and the means for achieving them.
a.
Brainstorming
b.
Organizing
c.
Planning
d.
Developing a mission
e.
A blueprint
5. Which type of plan helps managers implement the overall strategic plan?
a.
Operational
b.
Contingency
c.
Tactical
d.
Crisis
e.
Corporate-level
6. The planning process begins with which of these?
a.
The development of operational goals
b.
The development of a mission statement
c.
Communication of goals to the rest of the organization
d.
A company-wide meeting
e.
Brainstorming
7. _____ is primarily responsible for strategic goals/plans.
a.
Middle management
b.
Board of directors
c.
Consultants
d.
Top management
e.
Lower management
8. _____ is primarily responsible for operational goals/plans.
a.
Middle management
b.
Board of directors
c.
Consultants
d.
Top management
e.
Lower management
9. Which of these is(are) primarily concerned with tactical goals/plans?
a.
Middle management
b.
Board of directors
c.
Consultants
d.
Senior management
e.
Lower management
10. Which of the following is not a step in the organizational planning process?
a.
Monitor and learn
b.
Plan operations
c.
Translate the plan
d.
Develop the plan
e.
Plan marketing tactics
11. Sherry is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of
goals?
a.
Operational goals
b.
Tactical plans
c.
Strategic goals
d.
Mission statement
e.
Vision
12. Which of the following is NOT a tool for executing a plan?
a.
Management by objectives
b.
Operations map
c.
Performance dashboards
d.
Single use plans
e.
Decentralized responsibility
13. A statement that identifies distinguishing characteristics of an organization is known as a(n):
a.
goals statement.
b.
values statement.
c.
income statement.
d.
mission statement.
e.
competitive-edge statement.
14. Which of these are described by mission statements?
a.
Corporate values
b.
Product quality
c.
Location of facilities
d.
All of these
e.
None of these
15. “We respect our employees and value their diversity” is an example of a statement you are most likely
to find in the organization’s _____.
a.
mission statement
b.
strategic goals
c.
tactical goals
d.
strategic plans
e.
tactical plans
16. “We seek to become the premier business school in the west” is an example of a statement you are
most likely to find in the organization’s _____.
a.
tactical goals
b.
operational goals
c.
mission
d.
tactical plans
e.
operational plans
17. _____ refers to a broadly stated definition of the organization’s basic business scope and operations
that distinguishes it from similar types of organizations.
a.
Mission statement
b.
Goal statement
c.
Management by objective
d.
Goal setting
e.
Corporate competitive-value statement
18. _____ are the broad statements of where the organization wants to be in the future.
a.
Operational goals
b.
Tactical goals
c.
Strategic goals
d.
Operational goals
e.
Tactical plans
19. The official goals of the organization are best represented by the _____.
a.
strategic goals
b.
tactical goals
c.
operational goals
d.
competitive goals
e.
none of these
20. A long-term time frame is most closely associated with:
a.
operational plans.
b.
tactical plans.
c.
strategic plans.
d.
mission plans.
e.
tactical goals.
21. _____ are called the action steps by which an organization intends to attain its strategic goals.
a.
Tactical goals
b.
Operational goals
c.
Tactical plans
d.
Operational plans
e.
Strategic plans
22. _____ goals lead to the attainment of _____ goals, which in turn lead to the attainment of _____ goals.
a.
Operational; strategic; tactical
b.
Tactical; operational; strategic
c.
Strategic; tactical; operational
d.
Operational; tactical; strategic
e.
None of these.
23. Sarah is a middle manager at Stylin’ Sneakers Corporation. She is most likely responsible for the
achievement of _____ goals.
a.
operational
b.
tactical
c.
strategic
d.
lower-level
e.
top-level
24. Goals that define the outcomes that major divisions and departments must achieve in order for the
organization to reach its overall goals are called:
a.
strategic goals.
b.
tactical goals.
c.
operational goals.
d.
Gantt charts.
e.
contingency plans.
25. Silver Star Automobiles holds monthly planning and operational reviews to ensure that it is on track
for meeting organizational goals. This involves which stage of the organizational planning process?
a.
Developing the plan
b.
Translating the plan
c.
Plan operations
d.
Executing the plan
e.
Monitoring and learning
26. The organization’s reason for existence is known as the organization’s _____.
a.
value
b.
vision
c.
mission
d.
goal
e.
service
27. Which of the following refer to specific results expected from individuals?
a.
Operational goals
b.
Tactical goals
c.
Strategic goals
d.
Operational plans
e.
Mission statements
28. Which of the following represent plans developed at the organization’s lower levels that specify action
steps toward achieving operational goals and that support tactical planning activities?
a.
Tactical plans
b.
Strategic plans
c.
Operational plans
d.
Supervisory plans
e.
Organizational plans
29. The _____ is the department manager’s tool for daily and weekly activities.
a.
conventional goal
b.
strategic goal
c.
strategic plan
d.
operational plan
e.
targeted plan
30. Which of the following is a visual representation of the key drivers of an organization’s success,
showing the cause-and-effect relationships among goals and plans?
a.
Operational plan
b.
Gantt chart
c.
Strategy map
d.
SWOT analysis
e.
Strategic plan
31. Managers use _____ to direct employees and resources toward achieving specific outcomes that enable
the organization to perform efficiently and effectively.
a.
strategic goals
b.
operational goals
c.
growth goals
d.
financial results
e.
internal business process goals
32. In developing a strategy map for her interior design business, Carla has decided to promote employee
development by providing online training tools. This involves goals in which strategy map category?
a.
Financial performance goals
b.
Learning and growth goals
c.
Internal business process goals
d.
Customer service goals
e.
Supply chain goals
33. You are violating which of these goal characteristics when you attempt to create goals for every aspect
of employee behavior?
a.
Specific and measurable
b.
Linked to rewards
c.
Defined time period
d.
Cover key result areas
e.
Challenging but realistic
34. Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals.
This process violates which of the following criteria for effective goals?
a.
Specific and measurable
b.
Challenging but realistic
c.
Covers key result areas
d.
Defined time period
e.
Linked to rewards
35. Which of the following statements is NOT true in the context of characteristics of effective goals?
a.
Goals should be challenging but not unreasonably difficult.
b.
Goals should be set for every aspect of employee behavior.
c.
Goals should be specific and measurable.
d.
Goals should cover key results area.
e.
Goals should be linked to rewards.
36. Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of
what management method?
a.
Tactical planning
b.
Contingency planning
c.
Single-use planning
d.
Management by objectives
e.
Management by walking around
37. _____ is the first step in the MBO process.
a.
Setting goals
b.
Developing action plans
c.
Appraising overall performance
d.
Reviewing progress
e.
None of these
38. Which of these is a method of management whereby managers and employees define goals for every
department, project, and person and use them to monitor subsequent performance?
a.
Organizational planning
b.
Management by objectives
c.
Goal setting