Chương 4a

Chapter 7
Managerial Planning and

Goal Setting
True/False Questions
1. The Europa Hotel survived terrorism by carefully planning security measures for guests,
employees, and the building.
Answer: True Level: 2 Page: 237 Type: F
2. Because everything else stems from leading, of the four management functions, leading is
considered the most fundamental.
Answer: False Level: 2 Page: 238 Type: F
3. A desired future state that the individual or organization attempts to realize is a goal.
4. Goals specify today's means; plans specify future ends.
5. The act of determining the organization goals and the means for achieving them is called
goal setting.
6. The mission is the basis for the strategic level of goals and plans, which in turn shapes the
tactical and operational level.
7. The complexity of today’s environment and uncertainty about the future overwhelm many
managers and lead them to focus on long-term goals and plans instead of operational
issues and short-term results.
Chapter Seven * Managerial Planning and Goal Setting

Test Bank * Page 185
8. Because they provide legitimacy, rationale for decisions, and an increase in motivation
and commitment, goals and plans are valuable to an organization.
Answer: True Level: 1 Page: 239-240 Type: F
9. A plan tells "why" to achieve the goal.
10. Plans provide a standard of assessment.
11. 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 Strategic Statement.
12. The company's philosophy as well as purpose is often expressed in mission statements.
13. An organization's mission describes its reason for existence.
14. 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.
15. A broad statement of where the organization wants to be in the future refers to a mission
statement.
16. 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.
17. The department manager's tool for daily and weekly operations is called the operational
plan.

18. A means-end chain is when lower-level goals lead to the accomplishment of higher-level
goals.
19. Specific and measurable goal characteristics apply only to the lower-level goals.
20. Goals are most effective when they are specific, measurable, challenging and linked to
rewards.
21. To be effective, goals must be set for every aspect of employee behavior or organizational
performance.
22. The goals should be easy, for employees to feel motivated, so that they can achieve them
easily which in turn increases their motivation level.
23. MBO refers to managing by opportunity.
24. The most difficult step in an MBO process is reviewing progress.
25. An example of a qualitative goal is “the University will provide quality education at a fair
price.”
Answer: True Level: 3 Page: 247 Type: A
26. To review progress is the final step in the MBO process.
27. Problems with MBO occur when the company faces rapid change.

28. Organic organizations and values that encourage participation can harm the MBO
process.
29. Standing plans define company responses to specific situations such as natural
emergencies or competitive setbacks.
30. Contingency plans can also be considered as scenarios.
Answer: True Level: 1 Page: 250-251 Type: F
31. If Kari, manager at Tip Top Roofing, wanted to develop a contingency plan for Tip Top,
she would need to look at factors such as new equipment, the economy, and the company
workers’ compensation cases.
Answer: True Level: 3 Page: 251 Type: A
32. The first stage in crisis management planning includes building relationships and
designating crisis management team and spokesperson.
33. The three stages of crisis management are prevention, preparation, and containment.
34. The XYZ Corporation should create a crisis management group that is not cross-
functional, but does work together well under pressure.
Answer: False Level: 2 Page: 254 Type: A
35. In the containment stage of crisis management, the organization should “get the awful
truth out” to employees only as soon as possible.
36. Companies should ensure the physical safety and emotional needs of people and/or
animals after implementing a crisis management plan.
37. The CEO of Alex Aquariums, Inc. must do all of the planning for the company because
that is the way to do things in today’s workplace.
38. Turtle Terrace should use traditional planning since that is the type of planning every
company uses.
39. In a complex and competitive business world, traditional planning done by a select few is
the only planning that works.
40. A temporary group consisting of line managers responsible for developing strategic plans
is called a centralized planning group.
Multiple Choice Questions

1. Which of these refers to a desired future state that an organization attempts to realize?
a. Plan
b. Vision statement
c. Goal
d. Mission statement
e. Idea
Answer: c Level: 1 Page: 238 Type: F
2. specify future ends and specify today's means.
a. Goals, plans
b. Plans, goals
c. Planning, organizing
d. Ideas, behaviors
e. Mission, vision
Answer: a Level: 2 Page: 238 Type: F
3. 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.
Answer: b Level: 1 Page: 238 Type: F
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. 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
6. The is the basis for the strategic level of goals and plans which in turn shapes
the and level.
a. goal, mission, tactical

b. objective, operational, mission
c. operational goal, mission and tactical
d. mission, tactical, operational
e. tactical plan, operational, mission
Answer: d Level: 2 Page: 238 Type: F
7. Which of these are primarily responsible for strategic goals/plans?
a. Middle management
b. Board of directors
c. Consultants
d. Senior management
e. Lower management
8. ______ is primarily responsible for operational goals/plans.
c. Consultants
e. Lower management
Answer: e Level: 1 Page: 239 Type: F
9. Which of these is/are primarily concerned with tactical goals/plans?
c. Consultants
e. Lower management
10. Ruby 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
e. Vision
Answer: a Level: 2 Page: 239 Type: A
11. ______ symbolizes the legitimacy of the organization to external audiences.
b. Tactical plans
c. Strategic goals
e. Tactical goals
12. Rosalie is a manager at GMG Gaming. She recently attended a seminar on goal setting.
She wishes to use goals to provide a sense of direction to her staff. She is using goals as
a. a way to legitimize her department.

b. a source of motivation.
c. a standard of performance.
d. a guide to action.
e. impress others.
Answer: d Level: 2 Page: 240 Type: A
13. A statement that identifies distinguishing characteristics of an organization is known as
a. a goals statement.
b. a values statement.
c. an income statement.
d. a mission statement.
e. a competitive-edge statement.
14. Which of these are described by mission statements?
a. Corporate values
b. Company philosophy
c. Company purpose
d. All of the above
e. a and b only
15. The organization's reason for existence is known as
a. the organization's value.

b. the organization's vision.
c. the organization's mission.
d. the organization's goal.
e. the organization's service.
16. "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.
b. strategic goals.
c. tactical goals.
d. strategic plans.
e. tactical plans.
17. "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.
Answer: c Level: 3 Page: 241 Type: A
18. Which of these 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
19. At the top of the goal hierarchy is the
a. strategic goals.
b. tactical goals.
c. operational goals.
d. mission.
e. employee goals.
20. Which of these represent the broad statements of where the organization wants to be in
the future?
b. Tactical goals
c. Strategic goals
d. Operational goals
e. Tactical plans

21. 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 the above
22. 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.
23. Which of these 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
24. 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 the above.
Answer: d Level: 3 Page: 242-243 Type: F
25. Goals that define the outcomes that major divisions and departments must achieve in
order for the organization to reach its overall goals is called
a. strategic goals.
b. tactical goals.
c. operational goals.
d. a mission.
e. a plan.
26. Beth is a middle manager at Egg Elements Corporation. She is most likely responsible
for the achievement of goals.
a. operational
b. tactical
c. strategic
d. lower-level
e. top-level
27. ______ 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
28. Which of these refer to specific results expected from individuals?
b. Tactical goals
c. Strategic goals
d. Operational plans
e. Mission statements
29. Lower-level goals should lead to the achievement of higher-level goals. This is called
a. linking pin theory.

b. a value-based chain.
c. a means-end chain.
d. all of the above.
e. none of the above.
30. Which of these is lacking in the goal "profits should be increased in the coming year?"
a. Specific and measurable

b. Challenging but realistic
c. Covers key result areas
d. Defined time period
e. None of the above
31. Tabu is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales
for the current quarter. She is unhappy because she knows that the most any salesperson
has sold in one quarter in the past is $150,000. Her goal of $265,000 is probably
a. not specific and measurable.

b. not realistic.
c. irrelevant.
d. lacking a specific time period.
e. does not cover key result area.
Answer: b Level: 3 Page: 246 Type: A
32. You are violating which of these goal characteristics when you attempt to create goals for
every aspect of employee behavior?

b. Linked to rewards
c. Defined time period
d. Cover key result areas
e. Challenging but realistic
33. Samuel 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?

b. Challenging but realistic
c. Covers key result areas
d. Defined time period
e. Linked to rewards
34. All of the following are characteristics of effective goal setting EXCEPT
a. goals should be challenging but not unreasonably difficult.

b. goals should be set for every aspect of employee behavior.
c. specific and measurable.
d. cover key results area.
e. linked to rewards.
Answer: b Level: 2 Page: 245-246 Type: F
35. The ultimate impact of goals depended on the extent to which goal achievement is linked
to
a. rewards.
b. salary increases.
c. promotions.
e. b and c only.
36. Which of these is the first step in the MBO process?
a. Setting goals
b. Developing action plans
c. Appraising overall performance
d. Reviewing progress
37. In using MBO, objectives should be set
a. by the supervisor.
b. by the employee.
c. jointly by the supervisor and the employee.
d. by the accounting department.
e. by top management.
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
d. Mission development
e. Vision development
39. Yard Fence Corporation is currently implementing an MBO program. Managers and
employees jointly set objectives and develop action plans, and goal achievement is
evaluated on an annual basis. Yard Fence is missing which major activity that must occur
in order for MBO to be successful?
a. Developing a mission statement

b. Developing tactical goals
c. Reviewing progress
d. Reviewing operational plans
Answer: c Level: 2 Page: 247-248 Type: A
40. Frostburg Fireplaces has used MBO for the past year. Top management just finished
evaluating overall performance. The next step in the MBO process should be
a. to develop new action plans.

b. to develop new objectives based on the review of last year's performance.
c. to begin a new MBO "cycle", using the same objectives as last year.
d. to wait several months to allow information to be digested.
41. Which is the final step in the MBO process?
a. Appraise overall performance

b. Develop an action plan
c. Review progress
d. Set goals
e. Conduct periodic checkups
42. One major problem with MBO is

a. it discourages individual creativity.
b. it does not work well in constantly changing environments.
c. it decreases employee motivation.
d. it does not work well in non-profit organizations.
43. Which of the following is NOT one of the benefits of MBO?
a. Performance can be improved at all company levels.

b. Employees are motivated.
c. Efforts are focused on activities that will lead to goal attainment.
d. Operational goals are able to displace strategic goals.
e. Individual and department goals are aligned with company goals.
44. Which of these is true about single-use plans?
a. They are developed to achieve a set of goals that are unlikely to be repeated in the
future.
b. They are used to provide guidance for tasks performed repeatedly within the
organization.
c. They define plans that define company responses to specific situations, such as
emergencies or setbacks.
d. They are most important in the organizations.
45. Standing plans are
a. plans that are developed to achieve a set of goals that are unlikely to be repeated
in the future.
b. plans that used to provide guidance for tasks performed repeatedly within the
organization.
c. plans that define company responses to specific situations, such as emergencies or
setbacks.
d. most important in the organizations.
46. A project is an example of a

a. policy.
b. standing plan.
c. procedure.
d. single-use plan.
e. rule.
47. Numerous are likely to be part of an overall .
a. programs, project
b. policies, project
c. standing plans, program
d. projects, program
e. programs, rule
48. California Creamery requires that all absent employees bring a note from their doctor
when returning to work. This is an example of a
a. single-plan use.
b. standing plan.
c. program.
d. procedure.
e. project.
49. Which of these define boundaries within which to make a decision?
a. Programs
b. Policies
c. Rules
d. Procedures
e. Project
50. An example of a ______ is a statement supporting the organization's efforts in the area of
sexual harassment.
a. procedure
b. rule
c. policy
d. single-use plan
e. program
51. "No food and/or drinks in the classroom" is an example of a
a. procedure.
b. rule.
c. policy.
d. single-use plan.
e. project.
52. Which of these are true about contingency plans?
a. They are developed to achieve a set of goals that are unlikely to be repeated in the
future.
b. They are used to provide guidance for tasks performed repeatedly within the
organization.
c. They define company responses to specific situations, such as emergencies or
setbacks.
d. They are most important in the organizations.
53. Contingency plans are also referred to as
a. standing plans.
b. rules.
c. scenarios.
d. procedures.
e. operationally tactical plans.
54. The crisis management plan should be a ________ that specifies the actions to be taken,
and by whom, if a crisis occurs.
a. vague, verbal plan

b. detailed, verbal plan
c. long, difficult to read plan
d. vague, written plan
e. detailed, written plan
55. Which of the following is not a step in the containment stage in crisis management?
a. Meet safety and emotional needs

b. Return to business
c. Set up effective communications systems
d. Get the awful truth out
e. Activate the crisis management plan
56. During the ______ stage of his company’s crisis management, Jesse Winkler must ensure
that the stakeholders’ physical and emotional needs are met.
a. prevention
b. preparation
c. containment
d. response
e. all of the above
57. Traditionally, if Tara, CEO of Butterfly Pillows, needed to conduct corporate planning, it
would be performed by all of the following EXCEPT
a. central planning departments.

b. decentralized planning groups.
c. top executives.
d. consulting groups.
e. the president of the company.
58. The traditional approach to corporate planning was to
a. have a decentralized planning staff.

b. have a centralized planning department.
c. set up a planning task force.
d. set up planning committees.
e. use TQM approach.

59. A group of planning specialists who develop plans for the organization as a whole is
known as
a. management by objectives.
b. planning task force.
c. decentralized planning staff.
d. centralized planning department.
e. total quality management group.
60. Alabama Airlines has three planning specialists who help division managers develop their
own division plans. Serving as consultants to the divisions, the planning specialists give
advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is
utilizing what approach to the planning function?
a. Centralized planning department

b. Decentralized planning staff
c. Planning task force
d. Centralized planning committee
e. TQM
61. All of the following are ways in which companies can bring about relentless drive for
progress EXCEPT
a. create an environment that encourages people to experiment and learn.

b. make continuous improvement a way of life.
c. avoid stretching goals.
d. design a new role for planning staff.
e. All of the above are acceptable ways.
62. Baltimore Brewery allows its line managers to take responsibility for strategic planning.
This approach is consistent with which of the following?
a. Centralized planning department

c. Planning task force
d. Centralized planning committee
e. Command-and-control

63. Which of these refers to a temporary group consisting of line managers responsible for
developing strategic plans?
a. Planning task force

c. Centralized planning department
d. Schewhart planning group
e. Total quality management group
Scenario Questions
Scenario-Elaine Eastman
The new program would be focused around MBO concepts. Elaine Eastman had been a manager
at ABCD for ten years and she was not all certain if this new MBO approach was going to fit her
department. She had strong commitment to achieving the company's objectives, but she also
knew her employees well enough to know that some didn't share the same commitment.
1. Elaine can anticipate enjoying the advantages of MBO which include
a. increased orientation toward goal achievement.

b. performance can improve at all company levels.
c. employees are more motivated.
d. a & c are correct.
e. a, b, and c are correct.
Answer: e Type: A
2. Elaine can anticipate and work to prevent the problems of MBO which include
a. increase in paperwork that leads to a reduction of energy.

b. a decrease in communication between managers and employees.
c. greater conflict because of opposing goals.
Answer: a Type: A
3. If Elaine dictates or suggests the goals for her employees, she can expect

a. increased motivation from her workers.
b. decreased motivation from her workers.
c. decreased frustration for her workers.
d. decreased intragroup conflict.
Answer: b Type: A
4. In the MBO process, after the first step of setting objectives is accomplished, the next
step that Eliane should expect is
a. reviewing progress toward company goals.

b. appraising overall performance.
c. developing action plans.
d. having a company party to celebrate.
Answer: c Type: A
Short-Answer Questions
1. A(n) is a desired future state that the organization attempts to realize.
Answer: goal Page: 238
2. A(n) is a blueprint for goal achievement and specifies the necessary resource
allocations, schedules, tasks, and other actions.
Answer: Plan Page: 238
3. The act of determining the organization's goals and the means for achieving them is
referred to as .
Answer: planning Page: 238
4. ______ and plans are the responsibilities of middle managers.
Answer: Tactical goals Page: 239
5. Operational plans that focus on specific tasks and processes that help to meet tactical and
strategic goals are developed by ______ managers and supervisors.
Answer: front-line Page: 239

6. ______ and ______ facilitate employees’ identification with the organization and help
motivate them, provide a sense of direction, and allow managers to learn what the
organization is trying to accomplish.
Answer: Goals; plans Page: 239
7. List the five reasons explicit goals and plans are important.
Answer:
Explicit goals and plans can serve the following functions: legitimacy, source of
motivation and commitment, guide to action, rationale for decisions, and standard of
performance.
Page: 239-240
8. describes the organization's reason for existence.
Answer: mission Page: 241
9. A(n) _______ is a broadly stated definition of basic business scope and operations that
distinguishes the organization from others of a similar type.
Answer: mission statement Page: 241
10. Broad statements describing where the organization wants to be in the future are called
.
Answer: strategic goals Page: 242
11. _______ define the action steps by which an organization intends to attain its strategic
goals.
Answer: Strategic plans Page: 242
12. Goals that define the outcomes that major departments must achieve in order for the
organization to reach its overall goals are known as _______ goals.
Answer: tactical Page: 242
13. are designed to help execute major strategic plans and to accomplish a
specific part of the company's strategy.
Answer: Tactical plans Page: 243
14. The specific results expected from departments, work groups, and individuals are the
goals.
Answer: operational Page: 243
15. plans are developed at the lower levels of the organization to specify
action steps toward achieving operational goals and to support tactical plans.
Answer: Operational Page: 243
16. List the five characteristics of effective goals.
Answer:
Goals should be (1) specific and measurable; (2) they should cover key result areas; (3)
they should be challenging but realistic; (4) they should have a defined time period; and
(5) they should be linked to rewards.
Page: 246
17. is a method whereby managers and employees define goals for every
department, project, and person and use them to monitor subsequent performance.
Answer: Management by objectives Page: 247
18. The most difficult step in MBO is _______.
Answer: setting goals Page: 247
19. List the four major activities that must occur in order for MBO to succeed.
Answer: (1) Set goals, (2) develop action plans, (3) review progress, and (4) appraise
overall performance.
Page: 247-248
20. Managers believe that they are better oriented toward goal achievement when
__________ is used.
Answer: management by objectives Page: 247
21. ______ plans are used to provide guidance for work-related tasks that are performed
repeatedly within the organization.
Answer: Standing Page: 250
22. plans are developed to achieve a set of goals that are not likely to be
repeated in the future.

Answer: Single-use Page: 250
23. _______ are ongoing plans that are used to provide guidance for tasks performed
repeatedly within the organization.
Answer: Standing plans Page: 250
24. Plans that define company responses to specific situations, such as emergencies, setbacks,
or unexpected conditions are called plans.
Answer: contingency Page: 251
25. A special type of contingency plan that is used when events are sudden and devastating
and require immediate response is called ________.
Answer: crisis management planning
Page: 253
26. What are the three stages of crisis management?
Answer: Prevention, Preparation, and Containment
Page: 253
27. In the ______ stage of crisis management, the company needs to care for the emotional
and physical safety of its stakeholders.
Answer: containment Page: 255
28. ________ are groups of planning specialists who report directly to the CEO or president
of a company.
Answer: Centralized planning departments Page: 256
29. Although ______ planning approaches are still popular with some organizations, ______
planning are being criticized as inappropriate for today’s fast-paced environment.
Answer: traditional, formal Page: 256
30. A group of planning specialists assigned to major departments and divisions to help
managers develop their own strategic plans is called .
Answer: decentralized planning staff Page: 256
31. ______ planning done by a few individuals in a complex and competitive business
environment no longer works.
Answer: Traditional Page: 256
32. List the steps of the new workplace approach to planning.
Answer:
First, start with a strong mission. Next, set stretch goals. Third, create a culture that
encourages people to experiment and learn. Next, design a new role for planning staff
followed by, make continuous improvement a way of life. Embrace event driven
planning. Finally, total support and commitment to the planning process from top
management.
Page: 257-259
33. A temporary group of line managers who have the responsibility of developing a strategic
plan is known as a(n) _______.
Answer: planning task force Page: 229
34. List the six guidelines for planning in today’s workplace.
Answer: Start with a strong mission, set stretch goals, create a culture that encourages
learning, embrace event-driven planning, use temporary task forces, and remember that
planning still starts and stops at the top.
Page: 257-259
Essay Questions
1. In what ways do plans and goals benefit an organization?
ANSWER:
Plans and goals benefit the organization in several ways. First they provide legitimacy
and a reason for existence. They also provide a source of motivation and commitment,
provide guides for action and decision making, and they set a standard of performance.
Level: 2 Page: 239-240
2. Compare the four levels of goals and plans.
ANSWER:

The highest level is the mission statement, which defines the organization's basic business
scope and operations and specifies its reasons for existence. The second level is the level
of strategic goals and plans. Those pertain to the organization as a whole and specify
where the organization wants to be in the future. The third level is the tactical level, with
a focus on outcomes that major divisions and departments must achieve in order for the
organization to reach its overall goals. The fourth and lowest level is the
operational level, involving specific measurable results for departments, work groups, and
individuals.
3. Briefly define the characteristics of an effective goal.
ANSWER:
Effective goals are precisely defined and allow for measurable performance. They focus
on the key result areas that contribute most to desired performance. They should be
challenging but not unreasonably difficult. Finally, they should specify the time period
that they cover and they should be tied to valued rewards.
4. List and define the four major activities that must occur in order for management by
objectives (MBO) to succeed.
ANSWER:
The first step is setting goals. The setting of goals involves employees at all levels and
should incorporate the principles of effective goal setting. Goals should be jointly
determined by manager and employee, so as to increase the employee's level of
commitment. The second step is developing action plans. These action plans will specify
how the goals are to be achieved. Next, a progress review is important to make sure that
the action plans are working. They may be formal or informal and the action plan should
be changed if necessary. The last step is to determine if the goals have been achieved
within the specified time period. This appraisal should factor into the setting of the next
period's goals, allowing for feedback into the setting of the next set of goals.
5. Define the new planning paradigm and explain the rationale behind it.
ANSWER:
The new planning paradigm has four components. First, start with a strong mission.
Next, stretch goals. Third, create an environment that encourages people to experiment
and learn. Next, design a new role for planning staff. Finally, make continuous
improvement a way of life with total support and commitment of top management for the
planning process. This paradigm is based upon the principle of decentralization. It
strives to involve workers at every level of the company. Due to the volatility of the
business environment, dynamic, timely plans are needed by today's organizations. The
complexity of the problems and challenges facing today's organizations mandates that all
employees, with their individual perspectives and talents, be involved.


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Chapter 7

Managerial Planning and

Answer: True Level: 2 Page: 237 Type: F

Answer: False Level: 2 Page: 238 Type: F

Answer: True Level: 1 Page: 238 Type: F

4. Goals specify today's means; plans specify future ends.

Answer: False Level: 2 Page: 238 Type: F

Answer: False Level: 1 Page: 238 Type: F

Answer: True Level: 1 Page: 238 Type: F

Answer: False Level: 2 Page: 239 Type: F

Chapter Seven * Managerial Planning and Goal Setting

Answer: True Level: 1 Page: 239-240 Type: F

9. A plan tells "why" to achieve the goal.

Answer: False Level: 2 Page: 240 Type: F

10. Plans provide a standard of assessment.

Answer: False Level: 2 Page: 240 Type: F

Answer: False Level: 2 Page: 241 Type: F

Answer: True Level: 2 Page: 241 Type: F

13. An organization's mission describes its reason for existence.

Answer: True Level: 2 Page: 241 Type: F

Answer: True Level: 1 Page: 242 Type: F

Answer: False Level: 1 Page: 242 Type: F

Answer: False Level: 2 Page: 242 Type: F

Answer: True Level: 1 Page: 243 Type: F

Answer: True Level: 1 Page: 244 Type: F

Answer: False Level: 2 Page: 245 Type: F

Answer: True Level: 2 Page: 246 Type: F

Answer: False Level: 2 Page: 246 Type: F

Answer: False Level: 2 Page: 246 Type: F

23. MBO refers to managing by opportunity.

Answer: False Level: 1 Page: 247 Type: F

24. The most difficult step in an MBO process is reviewing progress.

Answer: False Level: 2 Page: 247 Type: F

Answer: True Level: 3 Page: 247 Type: A

26. To review progress is the final step in the MBO process.

Answer: False Level: 1 Page: 248 Type: F

Answer: True Level: 1 Page: 249 Type: F

Chapter Seven * Managerial Planning and Goal Setting

Answer: False Level: 2 Page: 249 Type: F

Answer: False Level: 1 Page: 250 Type: F

30. Contingency plans can also be considered as scenarios.

Answer: True Level: 1 Page: 250-251 Type: F

Answer: True Level: 3 Page: 251 Type: A

Answer: False Level: 2 Page: 253 Type: F

Answer: True Level: 1 Page: 253 Type: F

Answer: False Level: 2 Page: 254 Type: A

Answer: False Level: 2 Page: 255 Type: F

Answer: True Level: 2 Page: 255 Type: F

Answer: False Level: 2 Page: 256 Type: A

Answer: False Level: 2 Page: 256 Type: F

Answer: False Level: 1 Page: 256 Type: F

Multiple Choice Questions

Answer: c Level: 1 Page: 238 Type: F

2. specify future ends and specify today's means.

Answer: a Level: 2 Page: 238 Type: F

Chapter Seven * Managerial Planning and Goal Setting

Answer: b Level: 1 Page: 238 Type: F

Answer: c Level: 1 Page: 238 Type: F

5. The planning process begins with which of these?

a. The development of operational goals

Answer: b Level: 2 Page: 238 Type: F

a. goal, mission, tactical

Answer: d Level: 2 Page: 238 Type: F