True/False Questions
WHAT IS PLANNING?
1. Planning is concerned with how objectives are to be accomplished, not what is to be accomplished.
(False; easy; p. 184)
2. If a manager refuses to write anything down or share his plans with others in the organization, he is not truly planning.
(False; moderate; p. 184)
WHY DO MANAGERS PLAN?
3. Planning provides direction to managers and nonmanagers alike.
(True; easy; p. 185)
4. Even without planning, departments and individuals always work together, allowing organizations to move efficiently toward its goals.
(False; moderate; p. 185)
5. Research indicates that nonplanning organizations always outperform planning organizations.
(False; moderate; p. 185)
HOW DO MANAGERS PLAN?
6. Goals are the foundation of organizational planning.
(True; moderate; p. 186)
7. Most businesses have only one objective: to make a profit.
(False; easy; p. 186)
8. Most companies’ goals can be classified as either strategic or financial.
(True; moderate; p. 187)
9. Strategic goals are related to the financial performance of the organization.
(False; moderate; p. 187)
10. An organization’s real goals are often quite irrelevant to what actually goes on.
(False; easy; p. 189)
11. Operational plans specify the details of how the achievement of the overall objectives is to be obtained.
(True; moderate; p. 189)
12. Long term used to mean anything over three years, but now it means anything over one year.
(False; easy; p. 189)
13. Short-term plans are those covering one year or less.
(True; easy; p. 189)
14. Directional plans have clearly defined objectives.
(False; moderate; p. 190)
ESTABLISHING GOALS AND DEVELOPING PLANS
15. An integrated network of goals is sometimes called a means-end chain.
(True; moderate; p. 192)
16. In MBO, or management by objectives, goals are often less well-defined, giving managers and employees more flexibility to respond to changing conditions.
(False; moderate; p. 192)