Robbins Mgmt12 Tb08

8/19/2019 Robbins Mgmt12 Tb08

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Management, 12e (Robbins/Coulter)

Chapter 8 Foundations of Planning

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

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") Planning provides direction to managers and nonmanagers ali+e.Answer: *EPage e!: ""#

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-) Absence o! planning does not inhibit the abilit' o! departments and individ%als to wor+together or organiations to move.Answer: FALSEPage e!: ""#Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plans

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/) Planning helps managers eliminate %ncertaint' and ins%lates organiations !rom change.Answer: FALSEPage e!: ""#Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: 1&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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3) Several research st%dies have concl%sivel' proven that planning organiations alwa'so%tper!orm nonplanning organiations.Answer: FALSEPage e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plans

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4) St%dies indicate that doing a good job planning and implementing those plans pla' a bigger part in high per!ormance than does how m%ch planning is done.Answer: *EPage e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: 1&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

5) As managers plan, the' develop both goals and plans.Answer: *EPage e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

6) 0ost b%sinesses have onl' the single goal o! ma+ing pro!its.Answer: FALSEPage e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

7) Strategic goals !oc%s e8cl%sivel' on the !inancial per!ormance o! the organiation.

Answer: FALSEPage e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

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1#) Stated goals are those that an organiation act%all' p%rs%es.Answer: FALSEPage e!: """Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills

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11) *he n%mber o! 'ears %sed to de!ine short9term and long9term plans has increasedconsiderabl' beca%se o! the greater environmental certaint' b%sinesses have toda'.Answer: FALSEPage e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "

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1") Long9term plans are those with a time !rame be'ond three 'ears.Answer: *EPage e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

1-) Short9term plans are those covering one 'ear or less.Answer: *EPage e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

1/) hen %ncertaint' is high and managers m%st be !le8ible in order to respond to %ne8pectedchanges, directional plans are pre!erable.

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13) &irectional plans are clearl' de!ined and leave no room !or interpretation.Answer: FALSEPage e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills

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14) *he standard proced%re to be !ollowed b' the h%man reso%rces department o! a compan'when initiating disciplinar' action against an emplo'ee is an e8ample o! a standing plan.Answer: *EPage e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "

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15) 2n traditional goal setting, goals set b' top managers !low down thro%gh the organiation and become s%bgoals !or each organiational area.Answer: *EPage e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

16) 2n the management b' objectives ;0$) process o! goal setting, goals are not well9de!ined,giving managers and emplo'ees more !le8ibilit' to respond to changing conditions.Answer: FALSEPage e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

17) *he !irst step in goal setting is to eval%ate available reso%rces.Answer: FALSEPage e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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"#) *he commitment concept sa's that plans sho%ld e8tend !ar eno%gh to meet thosecommitments made when the plans were developed.Answer: *EPage e!: ""5

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"1) 2n an %ncertain environment, managers sho%ld develop plans that are speci!ic, b%t !le8ible.Answer: *EPage e!: ""7Learning $%tcome: &escribe the components o! the management environment< &isc%ss the processes and tools o! developing di!!erent t'pes o! plans

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"") &'namic environments re=%ire a !latter organiational hierarch' in order to plan e!!ectivel'.Answer: *EPage e!: ""7Learning $%tcome: &escribe the components o! the management environment< &isc%ss the processes and tools o! developing di!!erent t'pes o! plans< &isc%ss !actors in!l%encingorganiational str%ct%re decisionsAA(S: e!lective *hin+ing S+ills(h. $bjective: /&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

"-) >>>>>>>> involves de!ining the organiation?s goals, establishing strategies !or achievingthose goals, and developing plans to integrate and coordinate wor+ activities.A) E8ec%tion) Logistics() Planning&) $perationsAnswer: (

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"/) *he e!!ect o! planning on managers is that it !orces them to >>>>>>>>.A) grow resistant to change) anticipate and respond to change() eliminate %ncertaint'&) wor+ at cross p%rposes

Answer: Page e!: ""#Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: 1&i!!ic%lt': Eas'(lassi!ication: (oncept%al

"3) hich o! the !ollowing is one o! the reasons wh' managers sho%ld plan@A) hen wor+ activities are coordinated aro%nd plans, ine!!iciencies become obvio%s.) ncertaint' can be eliminated and the organiation can be ins%lated !rom change with

planning.() Planning eliminates the need to set goals.&) Planning eliminates the need to meas%re wor+ e!!ortAnswer: APage e!: ""#Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: 1&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

"4) hich o! the !ollowing is tr%e o! the impact o! !ormal planning on organiational per!ormance@A) Formal planning is associated with positive !inancial res%lts.) $rganiations that !ormall' plan invariabl' o%tper!orm those that don?t plan.() *he amo%nt o! planning done is more important to high per!ormance than the =%alit' o! planning and implementation&) (ompanies can start seeing the impact o! !ormal planning on per!ormance a!ter abo%t a 'earo! starting the planning process.Answer: APage e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills

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"5) hen !ormal planning !ails to lead to higher per!ormance, which o! the !ollowing is mostli+el' to be the reason !or the !ail%re@A) A participative st'le o! planning was %sed.) 0anagers were allowed too m%ch a%tonom'.() *he compan' emphasied the control !%nction over other !%nctions.

&) (onstraints o! the e8ternal environment.Answer: &Page e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: 1&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

"6) hich aspect o! planning re!ers to doc%ments that o%tline how res%lts are to be achieved@A) goals

) plans() objectives&) per!ormanceAnswer: Page e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

"7) oals are di!!erent !rom plans beca%se >>>>>>>>.A) goals identi!' speci!ic steps that the organiation needs to achieve, and plans identi!' theoverall mission o! the organiation) goals describe !inancial objectives, and plans describe objectives related to socialresponsibilit'() goals are important onl' !or small companies, and plans are important onl' !or largecompanies&) goals are desired o%tcomes, and plans describe how those o%tcomes will be accomplishedAnswer: &Page e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills

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-#) hich o! the !ollowing statements is tr%e regarding an organiation?s goals@A) All organiations share the single goal o! ma+ing pro!its.) A single goal is more e!!icient than m%ltiple goals !or de!ining an organiation?s s%ccess.() sing a single goal s%ch as pro!it ma' res%lt in %nethical behaviors b' emplo'ees.&) Long9term s%ccess is ens%red i! managers emphasie onl' one goal !or an organiation.

Answer: (Page e!: ""1Learning $%tcome: &isc%ss the role o! ethics and social responsibilit' in management< &isc%ssthe processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

-1) 0ost compan'?s goals can be classi!ied as either >>>>>>>> or >>>>>>>>.A) strategic< !inancial

) operational< tactical() social< economic&) strategic< operationalAnswer: APage e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

-") Bi+e, 2nc. is a sportswear and e=%ipment man%!act%rer that serves a m%ltit%de o! sportsdisciplines. hich o! the !ollowing statements !rom Bi+e wo%ld be the best e8ample o! astrategic goal@A) a ten percent increase in average ann%al sales) a seven percent increase in average ann%al income() achieving a ret%rn on investment o! 15 percent&) accelerating growth thro%gh !oc%sed e8ec%tionAnswer: &Page e!: ""19"""Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "


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--) An organiation?s >>>>>>>> goals are o!!icial statements o! what an organiation sa's, andwhat it wants its sta+eholders to believe its goals are.A) stated) real() a%thentic

&) implicitAnswer: APage e!: """Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

-/) hich o! the !ollowing is the best indicator o! an organiation?s real goals@A) organiational members? actions

) mission statement() ann%al reports&) stoc+ val%ationAnswer: APage e!: """Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

-3) An organiation?s mission states that it Cis committed to red%cing its environmental!ootprintC< b%t its !acilities do not compl' with stat%tor' environmental reg%lations. *his is aninstance o! how >>>>>>>>.A) strategic goals help shape !inancial goals) long9term goals di!!er !rom short9term goals() an organiations stated goals need not be its real goals&) a compan'?s real goals are derived !rom its mission statementAnswer: (Page e!: """Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "


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-4) $rganiational plans can be classi!ied on the basis o! all o! the !ollowing characteristics,e8cept on the basis o! their >>>>>>>>.A) breadth) attainabilit'() speci!icit'

&) !re=%enc' o! %seAnswer: Page e!: """Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

-5) Strategic plans are %s%all' >>>>>>>>.A) short term, directional, and standing

) short term, speci!ic, and standing() long term, directional, and single %se&) long term, speci!ic, and standingAnswer: (Page e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

-6) >>>>>>>> plans appl' to the entire organiation and establish the organiation?s overallgoals.A) &epartmental) Strategic() $perational&) Speci!icAnswer: Page e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

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-7) $perational plans are %s%all' >>>>>>>>.A) short term, directional, and standing) short term, speci!ic, and standing() long term, directional, and single %se&) long term, speci!ic, and standing

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/#) Plans that encompass onl' the prod%ction or the sales goals o! a compan' are termed >>>>>>>> plans.A) operational

) strategic() in!ormal&) !inancialAnswer: APage e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

/1) hich o! the !ollowing !actors has contrib%ted to the decline in the n%mber o! 'ears %sed tode!ine short9term and long9term plans@A) environmental %ncertaint') pro!it9orientation o! b%sinesses() !lattened organiational str%ct%res&) stagnant b%siness conditionsAnswer: APage e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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/") Long9term plans are de!ined as those with a time !rame be'ond >>>>>>>>.A) seven 'ears) one 'ear () !ive 'ears&) three 'ears

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/-) Short9term plans are those covering >>>>>>>> or less.A) three 'ears) one 'ear () si8 months&) !ive 'earsAnswer: Page e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

//) >>>>>>>> plans are plans that are clearl' de!ined and leave no room !or interpretation.A) &irectional) Stated() Long9term&) Speci!icAnswer: &Page e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

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/3) hat plans are pre!erable when %ncertaint' is high in the b%siness environment@A) standing plans) directional plans() speci!ic plans&) in!ormal plans

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/4) hich o! the !ollowing is an e8ample o! a single9%se plan@A) a!!irmative action hiring policies o! a compan') a plan developed to implement new environmental reg%lations

() the proced%re to be !ollowed !or !iring low9per!orming emplo'ees&) a plan developed to ens%re wor+er sa!et' at the compan'?s !acilitiesAnswer: Page e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: Application

/5) A standing plan is >>>>>>>>.A) an ongoing plan that provides g%idance !or activities per!ormed repeatedl') a plan that stands in place o! a pre!erred plan in case o! the !ail%re o! the latter () a one9time plan speci!icall' designed to meet the needs o! a %ni=%e sit%ation&) a !le8ible plan that sets o%t general g%idelines !or compan' strateg'Answer: APage e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: "&i!!ic%lt': Eas'(lassi!ication: (oncept%al

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/6) hich o! the !ollowing is an e8ample o! a standing plan@A) a retail chain?s plan to co%nter the entr' o! a new competitor ) a plan developed to address a s%dden, %nanticipated s%rge in demand() a !ire escape polic' establishing practices to be !ollowed in an emergenc'&) a plan to cope with radical changes in the political environment

Answer: (Page e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: Application

/7) 2n >>>>>>>>, goals set b' top managers !low down thro%gh the organiation and becomes%bgoals !or each organiational area.A) management b' objectives

) management b' observation() traditional goal setting&) management b' e8ceptionAnswer: (Page e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

3#) hich o! the !ollowing is an ass%mption associated with traditional goal setting@A) Emplo'ees will be more motivated to tr' to attain goals that the' helped set.) $rganiational goals m%st not be comm%nicated to lower level emplo'ees.() *op managers +now what is best beca%se the' see the Cbig pict%re.C&) $rganiational goals m%st not be bro+en down into individ%al goals.Answer: (Page e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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31) hich o! the !ollowing is one o! the problems associated with traditional goal setting@A) *op level managers tend to de!ine the organiation?s goals in ver' narrow terms.) *ransition o! strategic goals into departmental, team, and individ%al goals is di!!ic%lt.() 2t can res%lt in the !ormation o! a means9ends chain.&) oals set are invariabl' easil' accomplished.

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3") A problem associated with traditional goal setting is that >>>>>>>>.A) the narrowl' de!ined goals inhibit a manager?s abilit' to interpret them) the high degree o! reliance on emplo'ees !or developing goals is not s%ited to man' sit%ations

() clarit' is lost as the goals ma+e their wa' down !rom the top o! the organiation to lowerlevels&) it promotes the growth o! a !latter organiational str%ct%re and threatens organiationale!!icienc'Answer: (Page e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

3-) hich o! the !ollowing statements is tr%e o! traditional goal setting@A) *raditional goal setting ass%mes that emplo'ees +now best and emplo's a bottom9%papproach o! setting organiational goals.) Eval%ation o! per!ormance is carried o%t conc%rrentl' with the !low o! goals thro%gh theorganiation.() oals de!ined narrowl' b' top managers need to be made more directional as the' !low downthro%gh the organiation.&) 0anagers at each level de!ine goals and appl' their own interpretations and biases as the'ma+e them more speci!ic.Answer: &Page e!: ""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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3/) A >>>>>>>> is an integrated networ+ o! goals in which the accomplishment o! goals at onelevel serves as the means !or achieving the goals, or ends, at the ne8t level.A) reverse p'ramid) means9ends chain() bottom9%p ladder

&) process se=%enceAnswer: Page e!: ""3Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

33) hich o! the !ollowing is the !irst step in 0$@A) *he organiation?s overall objectives and strategies are !orm%lated.

) nit managers collaborativel' set speci!ic objectives !or their %nits with their managers.() Action plans are speci!ied and agreed %pon b' managers and emplo'ees.&) 0ajor objectives are allocated among divisional and departmental %nits.Answer: APage e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

34) hich o! the !ollowing is the last step in 0$@A) Progress toward objectives is periodicall' reviewed, and !eedbac+ is provided.) *he organiation?s overall objectives and strategies are !orm%lated.() S%ccess!%l achievement o! objectives is rein!orced b' per!ormance9based rewards.&) Action plans are implemented.Answer: APage e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

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35) >>>>>>>> is a process o! setting m%t%all'9agreed %pon goals and %sing those goals toeval%ate emplo'ee per!ormance.A) 0anagement b' objectives) *raditional goal setting() 0anagement b' observation

&) 0anagement b' e8ceptionAnswer: APage e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

36) hich o! the !ollowing is one o! the elements o! a management b' objectives ;0$) program@A) absence o! a time !rame) participative decision ma+ing() directional goals&) absence o! control meas%resAnswer: Page e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

37) hich o! the !ollowing is one o! the elements o! a management b' objectives ;0$) program@A) directional nat%re o! goals) per!ormance !eedbac+ () inde!inite time periods&) a top9down decision9ma+ing approachAnswer: Page e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -


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4#) hich o! the !ollowing re!lects the wa' goals are set in an 0$ program@A) oals are not %sed to meas%re and control emplo'ee per!ormance.) oals tend to be broad and directional to enco%rage interpretation b' individ%al managers.() Apart !rom being %sed to ens%re that emplo'ees are doing what the' are s%pposed to be doing,goals are %sed as a motivating tool !or emplo'ees.

&) oals are set b' top level managers and lower level emplo'ees implement them based %pontheir interpretation o! these goals.Answer: (Page e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

41) hich is the !irst step managers sho%ld !ollow in goal setting@

A) eval%ating available reso%rces) determining goals individ%all' or with inp%t !rom others() writing down goals and comm%nicating them to all who need to +now&) reviewing the organiation?s missionAnswer: &Page e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

4") A >>>>>>>> is a broad statement o! an organiation?s p%rpose that provides an overall g%ideto what organiational members thin+ is important.A) mission) proposal() project&) preambleAnswer: APage e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -

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4-) ell9written goals are >>>>>>>>.A) written in terms o! actions rather than o%tcomes) j%st o! reach() easil' achieved&) clear as to a time !rame

Answer: &Page e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

4/) An organiation is in the process o! goal setting. 2t has !inished reviewing the organiation?smission. hat sho%ld it do ne8t@A) determine the goals individ%all' or with inp%t !rom others

) write down the goals and comm%nicate them to all who need to +now() eval%ate available reso%rces&) review res%lts and whether goals are being metAnswer: (Page e!: ""5Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

43) hich o! the !ollowing is the last step in goal setting@A) review the organiation?s mission or p%rpose) determine the goals individ%all' or with inp%t !rom others() write down the goals and comm%nicate them to all who need to +now&) review res%lts and whether goals are being metAnswer: &Page e!: ""5Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

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44) hen %ncertaint' is high, plans sho%ld be >>>>>>>> and >>>>>>>>.A) speci!ic< !le8ible) directional< standing() short9term< directional&) general< in!ormal

Answer: APage e!: ""5Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

45) *he commitment concept sa's that plans sho%ld >>>>>>>>.A) e8tend !ar eno%gh to meet those commitments made when the plans were developed) be done !or as long a time period as possible

() be done !or as short a time period as possible&) not commit to speci!icall' meeting the goals made when the plans were developedAnswer: APage e!: ""5Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

46) *op e8ec%tives are mainl' involved in >>>>>>>> planning.A) !%nctional) operational() strategic&) departmentalAnswer: (Page e!: ""5Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

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47) >>>>>>>> planning dominates managers? planning e!!orts at lower levels o! the organiation.A) Strategic) $rganiation9wide() $perational&) &irectional

Answer: (Page e!: ""5Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

5#) hich o! the !ollowing is tr%e o! the traditional approach to planning@A) Plans are developed b' organiational members at the vario%s levels.) *his approach ma+es managerial planning thoro%gh, s'stematic, and coordinated.() Plans created thro%gh this method are seldom written down.&) Formal planning departments are rarel' %sed in this approach.Answer: Page e!: ""6Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': Eas'(lassi!ication: (oncept%al

51) hen is the traditional top9down approach to planning most li+el' to be e!!ective@A) when lower level emplo'ees develop plans) when the plans !oc%s on developing a large n%mber o! plans and care!%ll' doc%menting them() when the management avoids the %se o! a !ormal planning department&) when plans are developed that can act%all' be %sed b' organiational membersAnswer: &Page e!: ""6Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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5") Dow can managers e!!ectivel' plan when the e8ternal environment is contin%all' changing@A) *he' sho%ld discontin%e !ormal planning.) *he' sho%ld set general, b%t rigid plans.() *he' sho%ld be read' to change directions i! environmental conditions warrant.&) *he' sho%ld contin%e to !ollow the set organiational plans as persistence will event%all' pa'.

Answer: (Page e!: ""7Learning $%tcome: &escribe the components o! the management environment< &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: /&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

5-) hich o! the !ollowing statements is tr%e o! planning in d'namic environments@A) $rganiations sho%ld !ollow a p'ramidal str%ct%re when operating in %ncertain environments.) $rganiations m%st discontin%e !ormal planning in s%ch a scenario.() *o be %se!%l in a d'namic environment, plans need to be speci!ic and %nchanging.&) Flatter organiational hierarchies are necessar' !or planning in %ncertain environments.Answer: &Page e!: ""7Learning $%tcome: &escribe the components o! the management environment< &isc%ss the processes and tools o! developing di!!erent t'pes o! plans< &isc%ss !actors in!l%encingorganiational str%ct%re decisionsAA(S: e!lective *hin+ing S+ills(h. $bjective: /&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

5/) A manager?s anal'sis o! the e8ternal environment can be improved b' >>>>>>>>, whichinvolves screening in!ormation to detect emerging trends.A) environmental scanning) environmental activism() critical path anal'sis&) val%e screeningAnswer: APage e!: "-#Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills

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53) >>>>>>>> re!ers to gathering in!ormation abo%t competitors that allows managers toanticipate competitors? actions rather than merel' react to them.A) &%e diligence) (ompetitor intelligence() &ata aggregation

&) al%e anal'sisAnswer: Page e!: "-#Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: /&i!!ic%lt': Eas'(lassi!ication: (oncept%al

54) hich o! the !ollowing is tr%e o! competitor intelligence as a means o! environmentalscanning@A) *he Economic Espionage Act ma+es it a crime in the nited States to engage in competitorintelligence.) 2t is %nethical to %se competitor intelligence to ma+e strategic b%siness decisions.() (ompetitor intelligence is ethical i! competitor9related in!ormation is collected !rom so%rcesaccessible and available to the p%blic.&) %'ing competitors? prod%cts and as+ing their own emplo'ees to eval%ate them to learn abo%tnew technical innovations is an e8ample o! the %nethical practices !ollowed in competitorintelligence.Answer: (Page e!: "-#Learning $%tcome: &isc%ss the role o! ethics and social responsibilit' in management< &isc%ssthe processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: /&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

55) >>>>>>>> involves the the!t o! proprietar' materials or trade secrets b' an' means.A) (orporate espionage) %siness intelligence() &ata mining&) &ata aggregationAnswer: A

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56) *he >>>>>>>> Act ma+es it a crime in the nited States to engage in stealth o! a trade secret.A) Sarbanes9$8le') Patriot() Economic Espionage&) lass9Steagall

Answer: (Page e!: "-#Learning $%tcome: &isc%ss the role o! ethics and social responsibilit' in management< &isc%ssthe processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills(h. $bjective: /&i!!ic%lt': Eas'(lassi!ication: (oncept%al

etail Planning ;Scenario)

0r. *'ler Ball is president and (E$ o! a retail chain that is abo%t to begin operations inn%mero%s major cities across the nited States. *he stores will sell home !%rnishings that areconsidered moderatel' priced !or the average9income b%'er. &%ring the last !ew months he has been wor+ing to la' o%t directions !or the managers o! the stores. 0r. Ball and his vice presidents have decided that each store sho%ld have sales e=%al to or greater than 1## per s=%are!oot per da'. *o attract an ade=%ate n%mber o! c%stomers, the store sho%ld be well maintained both inside and o%t.

57) *he statement that each store sho%ld have sales e=%al to or greater than 1## per s=%are !oot per da' is an e8ample o! >>>>>>>>.A) a strategic plan) a directional plan() a !inancial goal&) a strategic goalAnswer: (Page e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: Application

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6#) *he statement that all stores sho%ld be well maintained both inside and o%t is an e8ample o! a >>>>>>>>.A) directional plan) speci!ic plan() !inancial goal

&) social goalAnswer: APage e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: Application

(omm%nit' Bewspaper ;Scenario)

obert &owns is in the process o! setting %p a small comm%nit' newspaper in his home town o!(orning, Bew Gor+. As a !irst step, he sets the !ollowing goal !or his compan': C*o be achampion !or !ree speech and !or the development o! the comm%nit'.C *his goal is to appearclearl' on top o! ever' page o! the newspaper.

61) *he above goal constit%tes the >>>>>>>> goal o! the compan'.A) in!ormal) operational() !inancial&) strategicAnswer: &Page e!: ""19"""Learning $%tcome: &isc%ss the role o! ethics and social responsibilit' in management< &isc%ssthe processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "&i!!ic%lt': &i!!ic%lt(lassi!ication: Application

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6") hen ma+ing editorial decisions !or his newspaper, obert &owns mostl' pic+s iss%es thatare in line with his political belie!s and those that his advertisers approve o!. For instance, herecentl' chose not to p%blish a stor' abo%t how a large local man%!act%rer, one o! the paper?s biggest advertisers, was !lo%ting environmental reg%lations. *his indicates that >>>>>>>>.A) the compan'?s strategic goals do not leave an' room !or interpretation

) the compan'?s stated goals are not its real goals() the compan'?s goals are directional in nat%re&) the compan'?s !inancial goals derive !rom its strategic goalsAnswer: Page e!: """Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "&i!!ic%lt': &i!!ic%lt(lassi!ication: Application

6-) &owns wants to !orm%late a plan that la's o%t general g%idelines !or his emplo'ees andleaves room !or interpretation. hich o! the !ollowing t'pes o! plans wo%ld best s%it hisre=%irement@A) in!ormal) speci!ic() directional&) standingAnswer: (Page e!: ""-Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "&i!!ic%lt': &i!!ic%lt(lassi!ication: Application

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A %siness Plan ;Scenario)

2magine that 'o% are the owner o! a small compan' that sells corporate gi!ts thro%gh an onlinestore. Go% emplo' abo%t "# people. Dowever, b%siness has slowed down in recent months and'o% realie that the organiation m%st move in a di!!erent direction i! it is to s%rvive. Go% have

reset some o! the compan'?s overall goals and want to develop a plan to achieve those goals. Go%are anticipating the b%siness environment to be volatile !or ne8t !ew 'ears.

6/) (onsidering the above in!ormation, it can be determined that 'o%r plan m%st be >>>>>>>>, >>>>>>>>, and >>>>>>>>.A) operational< directional< rigid) in!ormal< %nwritten< !le8ible() strategic< general< rigid&) strategic< speci!ic< !le8ibleAnswer: &Page e!: ""-

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63) (onsidering the characteristics o! well9written goals, which o! the !ollowing wo%ld be awell9written goal !or the above scenario@A) *o minimie costs, ma8imie pro!its, and ma8imie ret%rn on investment.) *o accelerate o%r growth to the ma8im%m possible level over the ne8t three 'ears.() *o achieve a "3 percent growth in reven%e, which is de!ined as the n%mber o! items soldm%ltiplied b' their price.&) *o invoice merchandise worth "##,###, ever' month, !or the ne8t three 'ears.Answer: &Page e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: Anal'tic S+ills(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: Application

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64) 2n a short essa', de!ine planning and disc%ss the characteristics o! !ormal planning as it is%sed in vario%s organiations.Answer: Planning involves de!ining the organiation?s goals, establishing an overall strateg' !orachieving those goals, and developing a comprehensive set o! plans to integrate and coordinateorganiational wor+. 2t is concerned with both ends and means. 2n !ormal planning, speci!ic goals

covering a period o! 'ears are de!ined. *hese goals are written and +nown to organiationalmembers.Page e!: ""#Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities(h. $bjective: 1&i!!ic%lt': Eas'(lassi!ication: (oncept%al

65) hite Forest Financials is a small investment !irm, operating in an e8tremel' volatileenvironment. $ne o! the compan'?s two owners, &avid hite, is o! the opinion that it wo%ld be!%tile !or the compan' to engage in !ormal planning as the b%siness environment is constantl'shi!ting. Dowever, the co9owner, 0arsha Forest, believes that planning is essential !or thecompan'?s s%ccess. ho wo%ld 'o% s%pport@ h'@Answer: 0arsha Forest is correct in her observation that planning is essential to a compan'?ss%ccess. enerall' spea+ing, !ormal planning is associated with positive !inancial res%lts.Planning o!!ers several advantages to companies. 2t establishes coordinated e!!ort and givesdirection to managers and nonmanagers ali+e. 2t red%ces overlapping and waste!%l activities.Planning also establishes goals or standards that are %sed in controlling. Planning red%ces%ncertaint' b' !orcing companies to loo+ ahead, anticipate change, consider the impact o!change, and develop appropriate responses. 2t also clari!ies the conse=%ences o! actionscompanies might ta+e in response to change. Even tho%gh planning can?t eliminate change,companies plan in order to anticipate changes and develop the most e!!ective response to them.Even when the environment is highl' %ncertain, it?s important to contin%e !ormal planning inorder to see an' e!!ect on organiational per!ormance. 2t?s the persistence in planning thatcontrib%tes to signi!icant per!ormance improvement. 2n an %ncertain environment, managerssho%ld develop plans that are speci!ic, b%t !le8ible. 0anagers need to recognie that planning isan ongoing process. *he plans serve as a road map altho%gh the destination ma' change d%e tod'namic mar+et conditions. *he' sho%ld be read' to change directions i! environmentalconditions warrant.Page e!: ""#9""1< ""79"-#Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: (omm%nication Abilities< Anal'tic S+ills(h. $bjective: 1< /

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66) &isc%ss the impact o! planning on organiational per!ormance.Answer: B%mero%s st%dies have loo+ed at the relationship between planning and per!ormance.Altho%gh most showed generall' positive relationships, we can?t sa' that organiations that!ormall' plan alwa's o%tper!orm those that don?t plan.enerall' spea+ing, !ormal planning is associated with positive !inancial res%ltsHhigher pro!its,

higher ret%rn on assets, and so !orth. Also, it seems that doing a good job planning andimplementing those plans pla' a bigger part in high per!ormance than does how m%ch planningis done. Be8t, in those st%dies where !ormal planning didn?t lead to higher per!ormance, thee8ternal environment o!ten was the c%lprit. hen e8ternal !orcesHsa', governmental reg%lationsor power!%l labor %nionsHconstrain managers? options, it red%ces the impact planning has on anorganiation?s per!ormance. Finall', the planning9per!ormance relationship seems to bein!l%enced b' the planning time !rame. 2t seems that at least !o%r 'ears o! !ormal planning isre=%ired be!ore it begins to a!!ect per!ormance.Page e!: ""1Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities

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67) &isting%ish between the stated and the real goals o! an organiation. 2ll%strate the di!!erencewith an e8ample.Answer: An organiation?s stated goals are o!!icial statements o! what an organiation sa's, andwhat it wants its sta+eholders to believe, its goals are. Dowever, stated goalsHwhich can be!o%nd in an organiation?s charter, ann%al report, p%blic relations anno%ncements, or in p%blicstatements made b' managersHare o!ten con!licting and in!l%enced b' what vario%ssta+eholders thin+ organiations sho%ld do. S%ch statements are vag%e and probabl' betterrepresent management?s p%blic relations s+ills than being meaning!%l g%ides to what theorganiation is act%all' tr'ing to accomplish. 2t sho%ldn?t be s%rprising then to !ind that anorganiation?s stated goals are o!ten irrelevant to what act%all' goes on. 2! 'o% want to +now anorganiation?s real goalsHthose goals an organiation act%all' p%rs%esHobserve whatorganiational members are doing. Actions de!ine priorities. For e8ample, a compan' ma' p%blicl' commit to increasing wor+er participation in management, while act%all' practicing ahierarchical, top9down approach. Inowing that real and stated goals ma' di!!er is important !orrecogniing what 'o% might otherwise thin+ are inconsistencies.Page e!: """Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities(h. $bjective: "

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7#) 2n a short essa', describe the di!!erent classi!ications o! plans.Answer: Strategic plans are plans that appl' to the entire organiation, establish theorganiation?s overall goals, and see+ to position the organiation in terms o! its environment.Plans that speci!' the details o! how the overall goals are to be achieved are called operational plans. Strategic plans tend to cover a longer time !rame and a broader view o! the organiation.

Strategic plans also incl%de the !orm%lation o! goals whereas operational plans de!ine wa's toachieve the goals. Also, operational plans tend to cover shorter time periods. e de!ine long9term plans as those with a time !rame be'ond three 'ears. Short9term plans are those coveringone 'ear or less. Speci!ic plans are plans that are clearl' de!ined and that leave no room !orinterpretation. *he' have clearl' de!ined objectives. *here?s no ambig%it' and no problem withmis%nderstanding. *he drawbac+s o! speci!ic plans are that the' re=%ire clarit' and a sense o! predictabilit' that o!ten do not e8ist. hen %ncertaint' is high and managers m%st be !le8ible inorder to respond to %ne8pected changes, directional plans are pre!erable. &irectional plans are!le8ible plans that set o%t general g%idelines. *he' provide !oc%s b%t don?t loc+ managers intospeci!ic goals or co%rses o! action. Dowever, the !le8ibilit' inherent in directional plans m%st beweighed against the loss o! clarit' provided b' speci!ic plans. A single9%se plan is a one9time

plan speci!icall' designed to meet the needs o! a %ni=%e sit%ation. 2n contrast, standing plans areongoing plans that provide g%idance !or activities per!ormed repeatedl'. Standing plans incl%de policies, r%les, and proced%res.Page e!: """9""/Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities(h. $bjective: "&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

71) 2n a short essa', de!ine management b' objectives ;0$) and list !o%r elements o! this t'peo! goal setting.Answer: 0anagement b' objectives ;0$) is a management s'stem in which speci!ic per!ormance goals are jointl' determined b' emplo'ees and their managers, progress towardaccomplishing these goals is periodicall' reviewed, and rewards are allocated on the basis o! this progress. ather than %sing goals onl' as controls, 0$ %ses them to motivate emplo'ees aswell. 0anagement b' objectives consists o! !o%r elements: goal speci!icit', participative decisionma+ing, an e8plicit time period, and per!ormance !eedbac+. 2ts appeal lies in its !oc%s onemplo'ees wor+ing to accomplish goals the' have had a hand in determining.Page e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities(h. $bjective: -


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7") 2n a short essa', list and disc%ss si8 characteristics o! well9designed goals.Answer: ;1) A well9designed goal sho%ld be written in terms o! o%tcomes rather than actions.*he desired end res%lt is the most important element o! an' goal and, there!ore, the goal sho%ld be written to re!lect this. ;") Be8t, a goal sho%ld be meas%rable and =%anti!iable. 2t?s m%ch easierto determine i! a goal has been met i! it?s meas%rable. 2n line with speci!'ing a =%anti!iable

meas%re o! accomplishment. ;-) A well9designed goal sho%ld also be clear as to a time !rame.Altho%gh open9ended goals ma' seem pre!erable beca%se o! their s%pposed !le8ibilit', in !act,goals witho%t a time !rame ma+e an organiation less !le8ible beca%se a manager is never s%rewhen the goal has been met or when he or she sho%ld call it =%its beca%se the goal will never bemet regardless o! how long he or she wor+s at it. ;/) Be8t, a well9designed goal sho%ld bechallenging b%t attainable. oals that are too eas' to accomplish are not motivating and neitherare goals that are not attainable even with e8ceptional e!!ort. ;3) ell9designed goals sho%ld bewritten down. Altho%gh act%all' writing down goals ma' seem too time cons%ming, the processo! writing the goals !orces people to thin+ them thro%gh. 2n addition, the written goals becomevisible and tangible evidence o! the importance o! wor+ing toward something. ;4) Finall', well9designed goals are comm%nicated to all organiational members who need to +now the goals.

0a+ing people aware o! the goals ens%res that the'?re Con the same pageC and wor+ing in wa'sto ens%re the accomplishment o! the organiational goals.Page e!: ""4Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

7-) 2n a short essa', list the three planning contingenc' !actors that in!l%ence the choice o! plansand ill%strate how these !actors in!l%ence planning.Answer: *hree contingenc' !actors a!!ect planning: level in the organiation, degree o!environmental %ncertaint', and length o! !%t%re commitments. *he planner?s level in theorganiation is li+el' to determine whether the plan is more strategic vers%s more operational.For the most part, operational planning dominates managers? planning at lower levels o! theorganiation, while at %pper levels, planning is more strateg' oriented. Environmental%ncertaint' is the second contingenc' !actor. hen %ncertaint' is high, plans sho%ld be speci!ic, b%t more !le8ible. nder these conditions, managers ma' sometimes need to abandon an e8isting plan in !avor o! a new one. nder low %ncertaint', management is more li+el' to adhere toe8isting plans. Lastl', the time !rame o! e8isting plans is li+el' to in!l%ence new and emerging plans. *he more c%rrent plans a!!ect !%t%re commitments, the longer the time !rame is !or whichmanagers m%st plan.Page e!: ""59""6

Learning $%tcome: &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities(h. $bjective: -&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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7/) 2n a short essa', describe how managers can e!!ectivel' plan when the e8ternal environmentis contin%all' changing.Answer: 2n an %ncertain environment, managers want to develop plans that are speci!ic, b%t!le8ible. Altho%gh this ma' seem contradictor', it?s not. *o be %se!%l, plans need somespeci!icit', b%t the plans sho%ld not be cast in stone. 0anagers m%st recognie that planning is an

ongoing process. *he plans serve as a roadmap altho%gh the destination ma' be changingconstantl' d%e to d'namic mar+et conditions. *he' sho%ld be willing to change directions i!environmental conditions warrant. *his !le8ibilit' is partic%larl' important as plans areimplemented. 0anagers m%st sta' alert to environmental changes that co%ld impact the e!!ectiveimplementation o! plans and ma+e changes as needed. Ieep in mind, also, that it?s important tocontin%e !ormal planning e!!orts, even when the environment is highl' %ncertain, in order to seean' e!!ect on organiational per!ormance. 2t?s the persistence in planning e!!orts that contrib%testo signi!icant per!ormance improvement. 2t seems that, as with most activities, managers Clearnto planC and the =%alit' o! their planning improves when the' contin%e to do it. Finall', e!!ective planning in d'namic environments means !lattening the organiational hierarch' as theresponsibilit' !or establishing goals and developing plans is shoved to lower organiational

levels beca%se there?s little time !or goals and plans to !low down !rom the top. 0anagers m%sttrain their emplo'ees in setting goals and establishing plans and then tr%st that the' will do so.Page e!: ""79"-#Learning $%tcome: &escribe the components o! the management environment< &isc%ss the processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities(h. $bjective: /&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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73) hat is competitor intelligence@ 2denti!' some o! the so%rces o! competitor intelligence@&isc%ss the legal and ethical iss%es related to this concept.Answer: (ompetitor intelligence involves gathering in!ormation abo%t competitors that allowsmanagers to anticipate competitors? actions rather than merel' react to them. 2t is one o! the!astest9growing !orms o! environmental scanning. 2t see+s basic in!ormation abo%t competitors:

ho are the'@ hat are the' doing@ Dow will what the'?re doing a!!ect %s@Advertisements, promotional materials, press releases, reports !iled with government agencies,ann%al reports, want ads, newspaper reports, in!ormation on the 2nternet, and ind%str'st%dies are readil' accessible so%rces o! in!ormation. Speci!ic in!ormation on an ind%str'and associated organiations is increasingl' available thro%gh electronic databases.0anagers can literall' tap into this wealth o! competitor in!ormation b' p%rchasing accessto databases. Attending trade shows and debrie!ing 'o%r own sales sta!! also can be goodso%rces o! in!ormation on competitors. 2n addition, man' organiations even reg%larl' b%'competitors? prod%cts and as+ their own emplo'ees to eval%ate them to learn abo%t newtechnical innovations.0anagers do need to be care!%l abo%t the wa' in!ormation, especiall' competitor intelligence, is

gathered to prevent an' concerns abo%t whether it?s legal or ethical. &i!!ic%lt decisions abo%tcompetitor intelligence arise beca%se o!ten there?s a !ine line between what?s considered legal andethical and what?s considered legal b%t %nethical. Some people or companies will go to an'lengthsHsome %nethicalHto get in!ormation abo%t competitors. 0an' who st%d' competitorintelligence s%ggest that m%ch o! the competitor9related in!ormation managers need to ma+ecr%cial strategic decisions that are available and accessible to the p%blic. 2n other words,competitor intelligence isn?t corporate espionage.Page e!: "-#Learning $%tcome: &isc%ss the role o! ethics and social responsibilit' in management< &isc%ssthe processes and tools o! developing di!!erent t'pes o! plansAA(S: e!lective *hin+ing S+ills< (omm%nication Abilities(h. $bjective: /&i!!ic%lt': 0oderate(lassi!ication: (oncept%al

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