Question 1

The term planning is used to describe any ideas developed by employees of an organization.

Accepted Answer

Planning refers to the process of developing a course of action that will help to achieve a specific goal or objective. While ideas from employees may be considered during this process, the term planning specifically refers to the formalized process of developing and organizing strategies, projects, or activities.

Question 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

Accepted Answer

Planning helps managers to anticipate and respond to change by establishing goals and objectives, identifying potential obstacles, and developing alternative courses of action. It does not necessarily guarantee higher profits or eliminate uncertainty, but it does provide a framework for decision making that can prevent managers from working at cross purposes.

Question 3

Planning reduces uncertainty regarding current events but often leaves rule-bound managers unable to anticipate change and develop appropriate responses to future events.

Accepted Answer

Planning helps in reducing uncertainty by forecasting future trends and preparing for them, thus enabling managers to anticipate change and develop appropriate responses, rather than leaving them unable to do so.

Question 4

Governmental regulations,powerful labour unions,and other critical environmental forces constrain managers' options and ________.
A)reduce the uncertainty associated with formal planning
B)neutralize the impact of planning on an organization's performance
C)don't affect the impact of planning on an organization's performance
D)reduce the impact of planning on an organization's performance

Accepted Answer

Governmental regulations, powerful labour unions, and other critical environmental forces are external factors that can limit the actions that managers can take. These constraints may reduce the impact of planning on an organization's performance because managers may not be able to implement the plans they have developed due to these external constraints. Therefore, option D is the correct answer.

Question 5

The quality of the planning process and the appropriate implementation of the plans likely ________.
A)don't contribute to high performance nearly as much as the extent of planning
B)contribute more to high performance than does the extent of planning
C)contribute less to financial performance than does the extent of planning
D)have little impact on overall organizational performance

Accepted Answer

While the extent of planning is important, it is the quality of the planning process and the successful implementation of plans that will have the greatest impact on organizational performance. Poor planning or ineffective implementation can undermine the effectiveness of even the most well-conceived strategies. Therefore, it is essential to focus on both the extent of planning and the quality of implementation to achieve high performance.

Question 6

Written and shared goals of formal planning ________.
A)are redundant in today's uncertain business climate
B)reduce ambiguity in what needs to be done
C)allow employees to adjust goals when required
D)create too many questions about responsibilities across departments

Accepted Answer

Written and shared goals of formal planning reduce ambiguity in what needs to be done, which is important for clear communication and effective execution of strategies. They also provide a sense of direction and purpose for employees, which can improve motivation and productivity. While adjustments may be necessary, clear goals provide a foundation for decision making and progress tracking. While there may be questions about responsibilities, this can be addressed through communication and collaboration across departments.

Question 7

Planning is concerned both with ends (what is to be done)and means (how it is to be done).

Accepted Answer

Planning involves setting goals and objectives (ends) as well as determining the resources, strategies, and actions necessary to achieve them (means). Therefore, planning is concerned with both ends and means.

Question 8

Planning establishes goals or standards that eliminate the need for controls.

Accepted Answer

Planning and control are interdependent functions. Planning provides the goals and standards while control provides the means of monitoring and measuring performance towards those goals. Controls help to ensure that deviations from the plan are identified and corrected to keep the organization on track towards its goals.

Question 9

Which 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 after about a year of starting the planning process.

Accepted Answer

Research has consistently shown that formal planning is associated with positive financial results, including increased profitability, higher sales growth rates, and a better stock market performance. However, it is not true that organizations that formally plan invariably outperform those that don't plan, nor is it true that the amount of planning done is more important than quality. The impact of formal planning on performance can vary depending on several factors, including the type of organization, industry, and external environment. Additionally, the time it takes to see the impact of planning on performance can vary widely and is not limited to one year.

Question 10

Retail Planning (Scenario)
Tyler Nall is president and CEO of a new chain of retail stores that is about to begin operations. During the last couple of months, he has been developing goals and directions for the stores, which will sell moderately priced home furnishings to average-income consumers. The plan is to open 20 to 30 stores in large shopping centres across Canada over the next three years. Tyler and his vice-presidents have decided that each store should have sales equal to or greater than $900 per square metre per day. To attract an adequate number of customers, each store should be:
• located in an out-parcel site of a major shopping mall;
• located at a mall that attracts an average of at least 2,000 customers daily;
• well maintained both inside and out;
• well lit, throughout the store;
• arranged in room settings to highlight the home furnishing decor;
• open from 9 a.m. to 9 p.m. Monday to Saturday, and 1 p.m. to 5 p.m. Sunday;
• staffed with friendly, well-groomed sales personnel dressed in business attire.
-The primary management function that Tyler and the vice-presidents have been performing during the last couple of months is ________.
A)leading
B)planning
C)organizing
D)controlling

Accepted Answer

The primary management function that Tyler and the vice-presidents have been performing during the last couple of months is planning. They have been developing goals and directions for the stores and selecting criteria for choosing store locations to ensure sales targets are met.

Question 11

Planning is not necessary to carry out organizational goals as long as strong controls are in place.

Accepted Answer

Planning is essential to set organizational goals and determine the actions needed to achieve them. While strong controls help to monitor progress and ensure accountability, they cannot replace the need for effective planning. Without planning, there is no clear direction or strategy for achieving success, making it much more difficult to implement effective control measures.

Question 12

Which of the following statements about planning is TRUE?
A)Planning is concerned with means but not ends.
B)Planning is concerned with ends but not means.
C)Planning is concerned with both means and ends.
D)Planning establishes goals or standards that eliminate the need for controls.

Accepted Answer

Planning is concerned with both means and ends. It establishes both a desired end result and the means to achieve that result. It involves setting goals, developing strategies, and outlining actionable steps to achieve those goals. Without planning, organizations may struggle to achieve their objectives, and the need for controls remains even with good planning as overseeing the implementation helps in ensuring objectives are met.

Question 13

Planning is often called the primary management function because it ________.
A)creates a unified vision for organizational members to work toward
B)establishes the basis for all the other management functions
C)sets the tone for the organization's culture
D)is the most important management function overall

Accepted Answer

Planning establishes the basis for all the other management functions, such as organizing, leading, and controlling. It provides a structure and direction for the organization's activities and sets the goals and objectives that guide decision-making and resource allocation. Without effective planning, the other management functions may not have a clear direction or purpose.

Question 14

In organizations where formal planning did not lead to higher performance,the cause was often ________.
A)forces in the external environment
B)poor implementation of plans by management
C)lack of support by employees
D)poor communication of plan objectives

Accepted Answer

The answer of In organizations where formal planning did not...

Question 15

Planning can't eliminate change.Managers plan in order to ________.
A)maximize the overlap in work activities
B)anticipate changes and develop the most effective response
C)reduce or eliminate the need for controls
D)eliminate uncertainty

Accepted Answer

Planning cannot eliminate change, but it can help managers anticipate changes and develop effective responses to them. Planning provides a framework for decision-making that allows managers to react quickly and effectively to changing circumstances. While planning cannot eliminate uncertainty, it can help managers prepare for it and minimize its impact. Maximizing the overlap in work activities and reducing or eliminating the need for controls are not the primary goals of planning.

Question 16

Generally speaking,formal planning is associated with ________.
A)higher costs
B)higher waste of time
C)shorter time frames
D)higher profits

Accepted Answer

Formal planning is typically associated with higher profits because it involves a structured and systematic approach to setting goals, developing strategies, and allocating resources. This helps businesses to operate more efficiently and effectively, resulting in better financial outcomes. Additionally, while formal planning may require an upfront investment of time and resources, it can ultimately save businesses money by reducing waste and avoiding costly mistakes.

Question 17

Planning reduces overlapping and wasteful activities.

Accepted Answer

Planning helps to organize and coordinate activities and resources, which reduces the likelihood of overlapping and wasteful activities. By identifying priorities and allocating resources effectively, planning can help to streamline operations and improve efficiency.

Question 18

Planning reduces ________ by forcing managers to look ahead and anticipate ________.
A)the need for controls; risk levels
B)bureaucracy; organizational growth
C)risk; economic and competitive conditions
D)uncertainty; change

Accepted Answer

Planning helps managers anticipate future conditions and uncertainties, thereby reducing the unpredictability associated with change.

Question 19

Formal planning involves which of the following aspects?
A)planning for an unspecified period of time
B)focusing on means but not ends
C)communicating the plan to managers only
D)writing achievable goals

Accepted Answer

Formal planning involves setting achievable goals that can be measured and evaluated over a specific period of time. It is important to write down these goals and communicate them to all stakeholders, not just managers. Formal planning should also focus on both means and ends to ensure that the desired outcomes are achieved. Planning for an unspecified period of time can make it difficult to measure success and make necessary adjustments.

Question 20

When formal planning fails to lead to higher performance,which of the following is most likely to be the reason for the failure?
A)the company emphasized the control function over other functions.
B)a participative style of planning was used.
C)managers were allowed too much autonomy.
D)constraints of the external environment

Accepted Answer

The constraints of the external environment can significantly impact the effectiveness of formal planning, leading to failures in achieving higher performance. External factors such as economic conditions, competition, and regulatory changes are often beyond the control of the organization and can render even well-crafted plans ineffective.

Quiz 9: Foundations of Planning

The term planning is used to describe any ideas developed by employees of an organization.

The effect of planning on managers is that it forces them to ________.

Planning reduces uncertainty regarding current events but often leaves rule-bound managers unable to anticipate change and develop appropriate responses to future events.

Governmental regulations,powerful labour unions,and other critical environmental forces constrain managers' options and ________.

The quality of the planning process and the appropriate implementation of the plans likely ________.

Written and shared goals of formal planning ________.

Planning is concerned both with ends (what is to be done)and means (how it is to be done).

Planning establishes goals or standards that eliminate the need for controls.

Which of the following is TRUE of the impact of formal planning on organizational performance?

Planning is not necessary to carry out organizational goals as long as strong controls are in place.

Which of the following statements about planning is TRUE?

Planning is often called the primary management function because it ________.

In organizations where formal planning did not lead to higher performance,the cause was often ________.

Planning can't eliminate change.Managers plan in order to ________.

Generally speaking,formal planning is associated with ________.

Planning reduces overlapping and wasteful activities.

Planning reduces by forcing managers to look ahead and anticipate .

Formal planning involves which of the following aspects?

When formal planning fails to lead to higher performance,which of the following is most likely to be the reason for the failure?