Multiple Choice Questions on Foundations of Planning

Chapter 7 Foundations of Planning

True/False Questions

WHAT IS PLANNING?

1. Planning is concerned with how objectives are to be accomplished, not what is to be accomplished.

(False; easy; p. 184)

2. If a manager refuses to write anything down or share his plans with others in the organization, he is not truly planning.

(False; moderate; p. 184)

WHY DO MANAGERS PLAN?

3. Planning provides direction to managers and nonmanagers alike.

(True; easy; p. 185)

4. Even without planning, departments and individuals always work together, allowing organizations to move efficiently toward its goals.

(False; moderate; p. 185)

5. Research indicates that nonplanning organizations always outperform planning organizations.

(False; moderate; p. 185)

HOW DO MANAGERS PLAN?

6. Goals are the foundation of organizational planning.

(True; moderate; p. 186)

7. Most businesses have only one objective: to make a profit.

(False; easy; p. 186)

8. Most companies’ goals can be classified as either strategic or financial.

(True; moderate; p. 187)

9. Strategic goals are related to the financial performance of the organization.

(False; moderate; p. 187)

10. An organization’s real goals are often quite irrelevant to what actually goes on.

(False; easy; p. 189)

11. Operational plans specify the details of how the achievement of the overall objectives is to be obtained.

(True; moderate; p. 189)

12. Long term used to mean anything over three years, but now it means anything over one year.

(False; easy; p. 189)

13. Short-term plans are those covering one year or less.

(True; easy; p. 189)

14. Directional plans have clearly defined objectives.

(False; moderate; p. 190)

ESTABLISHING GOALS AND DEVELOPING PLANS

15. An integrated network of goals is sometimes called a means-end chain.

(True; moderate; p. 192)

16. In MBO, or management by objectives, goals are often less well-defined, giving managers and employees more...