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Chapter7FoundationsofPlanning

True/FalseQuestions

WHATISPLANNING?

Planningisconcernedwithhowobjectivesaretobeaccomplished,notwhatistobeaccomplished.

Ifamanagerrefusestowriteanythingdownorsharehisplanswithothersintheorganization,heisnottrulyplanning.

WHYDOMANAGERSPLAN?

Planningprovidesdirectiontomanagersandnonmanagersalike.

Evenwithoutplanning,departmentsandindividualsalwaysworktogether,allowingorganizationstomoveefficientlytowarditsgoals.

Researchindicatesthatnonplanningorganizationsalwaysoutperformplanningorganizations.

HOWDOMANAGERSPLAN?

Goalsarethefoundationoforganizationalplanning.

Mostbusinesseshaveonlyoneobjective:tomakeaprofit.

Mostcompanies’goalscanbeclassifiedaseitherstrategicorfinancial.

Strategicgoalsarerelatedtothefinancialperformanceoftheorganization.

Anorganization’srealgoalsareoftenquiteirrelevanttowhatactuallygoeson.

Operationalplansspecifythedetailsofhowtheachievementoftheoverallobjectivesistobeobtained.

Longtermusedtomeananythingoverthreeyears,butnowitmeansanythingoveroneyear.

Short-termplansarethosecoveringoneyearorless.

Directionalplanshaveclearlydefinedobjectives.

ESTABLISHINGGOALSANDDEVELOPINGPLANS

Anintegratednetworkofgoalsissometimescalledameans-endchain.

InMBO,ormanagementbyobjectives,goalsareoftenlesswell-defined,givingmanagersandemployeesmoreflexibilitytorespondtochangingconditions.

InatypicalMBOprogram,successfulachievementofobjectivesisreinforcedbyperformance-basedrewards.

AnMBOprogramconsistsoffourelements:loosegoals,participativedecisionmaking,anexplicittimeperiod,andperformancefeedback.

StudiesofactualMBOprogramsfindmixedresultsintermsofitseffectsonoverallemployeeperformanceandorganizationalproductivity.

Intimesofdynamicenvironmentalchange,well-definedandpreciselydevelopedactionplansenhanceorganizationalperformance.

Awell-designedgoalshouldbemeasurableandquantifiable.

Goalsthataretooeasytoaccomplisharenotmotivatingandneitheraregoalsthatarenotattainableevenwithexceptionaleffort.

Thesecondstepingoalsettingistodeterminethegoalsindividuallyorwithinputfromothers.

Themorethecurrentplansaffectfuturecommitments,thelongerthetimeframeforwhichmanagersshouldplan.

CONTEMPORARYISSUESINPLANNING

Planningisawasteoftimeinavolatileenvironment.

Amajorargumentagainstformalplanscan’treplaceintuitionandcreativity.

It’snotenoughformanagersjusttoplan.Theyhavetostartsettinggoals.

Intoday’sdynamicbusinessenvironment,successfulfirmsrecognizethatplanningisanongoingprocess,notatabletofrulescastinstone.

Managersmustbeabletofollowthroughwithplansevenifconditionschange.

Effectiveplanningindynamicenvironmentsmeansflatteningtheorganizationalhierarchy.

Multiple-ChoiceQuestions

Foreachofthefollowing,choosetheanswerthatmostcompletelyanswersthequestion.

WhatIsPlanning?

Planninginvolvesdefiningtheorganization’sgoals,establishinganoverallstrategyforachievingthosegoals,anddevelopingacomprehensivesetofplans_____________.

astowhichshiftwillperformwhatworkfunctions

todeterminewhichmanagerwillbeinchargeofwhichdepartment

fororganizationalworkactivities

toestablishthequalityandquantityofworktobeaccomplished

Ininformalplanning,__________sharingofgoalswithothersintheorganization.

everythingmaybewrittendown,butthereislittleorno

everythingiswrittendown,andthereis

nothingiswrittendown,andthereislittleorno

nothingiswrittendown;thereforemanagementdoesalotof

Informalplanningis_________.

performedatthelowestorganizationallevel

generalandlackscontinuity

developedininformalmeetingsataresort

specificandisdevelopedbythemiddlemanagersfortheirdepartment

Informalplanning,_________.

specificgoalscoveringaperiodofyearsaredefined

specificgoalsaredevelopedandnotwritten

generalgoalsaredevelopedandnotwritten

generalgoalscoveringanunspecifiedperiodofyearsaredefined

Formalplanninginvolveswhichofthefollowingaspects?

developinggeneralobjectives

planningforuptooneyear

writingobjectives

distributingtheplantoallmanagerialemployees

WHYDOMANAGERSPLAN?

Theeffectofplanningonmanagersisthatitforcesthemto_______________.

reacttochange

considertheimpactofchange

respondindiscriminately

developbureaucraticresponsemodels

Planningcan’teliminatechange.Managersplaninorderto___________.

bepreparedforwhenchangesinmanagementatthetopoccurs

anticipatechangesanddevelopthemosteffectiveresponsetochanges

decidewhatneedstobedonewhenachangeinenvironmentshappen

havetheappropriatematerialsavailablewhenthedemandforthemcomesabout

Planninggivesdirection,reducestheimpactofchange,minimizeswasteandredundancy,and__________.

establishestheworkloadsforeachofthedepartments

setsthebasisusedforpromotionofindividualswithintheorganization

eliminatesdepartmentsthatarenotneededwithintheplan

setsthestandardsusedincontrolling

Studiesofperformanceinorganizationsthatplanhavereached___________.

somewhatnegativeconclusionsregardingthebenefitsofplanning

generallymixedconclusionsregardingthebenefitsofplanning

generallynegativeconclusionsregardingthebenefitsofplanning

generallypositiveconclusionsregardingthebenefitsofplanning

Thequalityoftheplanningprocessandtheappropriateimplementationoftheplansprobably___________.

don’tcontributetohighperformancenearlyasmuchastheextentofplanning

contributemoretohighperformancethandoestheextentofplanning

contributelesstohighperformancethandoestheextentofplanning

shouldbestudiedmoretofactuallydeterminewhichcontributesthemost

Instudiesinwhichformalplanningdidnotleadtohigherperformance,____________.

theexternalenvironmentoftenwastheculprit

management’sexecutionoftheplanswasmostoftenthereasonforfailure

employees’implementationoftheplanswastheprimaryreasonforfailure

lackofcommunicationwasmostoftenthereasonforfailure

Governmentalregulations,powerfullaborunions,andothercriticalenvironmentalforcesconstrainmanagers’optionsand__________theimpactofplanningonanorganization’sperformance.

reduce

increase

neutralize

don’taffect

HowDoManagersPlan?

Planningisoftencalledtheprimarymanagementfunctionbecauseit____________.

offerssomebasisforfuturedecisionmaking

createsthevisionfortheorganizationalmemberstoworktoward

establishesthebasisforalltheotherfunctions

setsthetonefortheorganizationalculture

Planninginvolvestwoimportantelements:___________.

goalsanddecisions

goalsandplans

plansanddecisions

goalsandactions

Goalsareobjectives,__________.

andweusethetwotermsinterchangeably

butgoalsarelongterm,andobjectivesareshortterm

butgoalsareusedbytopmanagement,andobjectivesareusedbyfirst-levelmanagement

butgoalsareusedinreferencetoprofits,andobjectivesareusedinreferencetoproductionoutput

Plansaredocumentsthatoutlinehowgoalsaregoingtobemetand___________.

definewhichdepartmenthaswhatresponsibilitiesneededtoaccomplishthegoals

tellwhatmaterialsandprocessesarenecessarytofulfillthegoals

identifyhowmuchcapitalisrequiredtocompletethegoals

describeresourceallocations,schedules,andothernecessaryactionstoaccomplishthegoals

__________canevaluatewhetheranorganizationissuccessful.

Agoalistheonlymeasurethat

Nosinglemeasure

Plansarealsoameasurethat

Stakeholdersaretheonlygroupsthat

Whenmanagersemphasizeonegoal,they___________.

assurethattheonegoalwillbeaccomplishedevenabovetheestablishedlevel

ignoreothergoalsthatmustalsobereachediflong-termsuccessistoachieved

makethegoaleasiertobeaccomplishedbyallorganizationalmembers

denytheorganizationalmemberstheopportunitytogrowanddevelop

Usingasingleobjectivecanresultinunethicalpracticesbecausemanagers____________.

wanttosatisfythestockholdersoftheorganization

willmanipulatetheoutcomesreportedtoassurethattheoneobjectiveisachieved

willignoreotherimportantpartsoftheirjobsinordertolookgoodonthatonemeasure

willuseovertimetoaccomplishthatsingleobjectivewithoutreportingit

Officialstatementsofwhatanorganizationsaysandwhatitwantsitsvariousstakeholderstobelievearereferredtoas___________.

realgoals

statedgoals

committedgoals

comprehensivegoals

Theconflictinstatedgoalsexistsbecauseorganizationsrespondtoavarietyof_______________.

stakeholders

externalenvironments

governmentalregulations

stockholders

Whichofthefollowingistrueconcerninganorganization’sstatedobjectives?

Organizationsissueidenticalobjectivestoallconstituents.

Organizationstypicallyhaveinternalandexternalsetsofobjectives.

Organizationsmayissuedifferentobjectivestostockholders,customers,employees,andthepublic.

Statedobjectivesareusuallyinlinewithshort-termactions.

Whatshouldapersondotounderstandwhattherealobjectivesoftheorganizationare?

observeorganizationalmembers’actions

attendastockholders’annualmeeting

readtheirannualreport

watchtelevisionnewsreports

Themostcommonwaystodescribeorganizationalplansarebytheirfrequencyofuse,timeframe,specificity,and___________.

quantifiability

flexibility

breadth

attainability

Whenwecategorizeplansasbeingdirectionalversusspecific,wearecategorizingthemby____________.

breadth

specificity

frequencyofuse

depth

Whenwecategorizeplansasbeingsingle-useversusstanding,wecategorizethemby____________.

breadth

specificity

frequencyofuse

timeframe

Strategicplansareplansthatapplytotheentireorganization,establishtheorganization’soverallgoals,and____________.

guidetheorganizationtowardmaximizingorganizationalprofitsforthestockholders

attempttosatisfyallgovernmentregulationswhilemaximizingprofits

satisfytheorganization’sstakeholders

seektopositiontheorganizationintermsofitsenvironment

Operationalplansspecifythedetailsof___________.

whatdepartmentperformswhichfunctionalprocesstoaccomplishthegoals

whatmaterialsarerequiredforwhichproductbeingproduced

wheneachproductmodelistobeproduced

howtheoverallgoalsaretobeachieved

Strategicplanstendtocoveralongerperiodoftimethanoperationalgoalsandalso_____________.

coveramorenarrowviewoftheorganization

coverthefinancialprojectionsoftheplanningperiod

coverabroaderviewoftheorganization

includeanestimateoftheprofitsthatthestockholdercananticipateasdividends

Strategicplansincludetheformulationofgoals,whereasoperationalplansdefinewaysto_____________.

maximizetheorganization’sprofits

achievethegoals

minimizethenumberofemployeesthathavetobelaidoffinhardtimes

providethemostefficientmethodsofproduction

Asorganizationalenvironmentshavebecomemoreuncertain,____________.

organizationsarehavingtomakelongertermplans

organizationshavetoresisttheuncertaintiestokeeptheplansmovingtowardtheobjectives

organizationshavetorequestthatthegovernmentpassmorelegislationrestrictingtheamountofuncertainty

thedefinitionoflongtermhaschanged

Specificplansareclearlydefinedand____________.

allowmanagerstotheirinterpret“flexibility”ontheirown

leavenoroomforinterpretation

givethemanagersauthoritytointerprettheplansfortheirareaofresponsibility

keepthestakeholdersinformedoftheorganization’sobjectives

Astatelegislativeplanthatcallsfora2.45percentincreaseintobaccosalestaxforthenext2yearswouldbeconsideredwhattypeofplan?

strategic

operational

specific

directional

Directionalplans_____________.

haveclearlydefinedobjectives

identifygeneralguidelines

meettheneedsofauniquesituation

lastfor3–5years

Theflexibilityinherentindirectionalplansmustbeweighedagainstthe_____________.

gainofashorterplanningperiodbyspecificplans

gainofalongerplanningprovidedbyspecificplans

lossofclarityprovidedbyspecificplans

lossofashorterplanningperiodbyspecificplans

__________isaone-timeplanspecificallydesignedtomeettheneedsofauniquesituation.

Amultipurposeplan

Astrategicplan

Anoperationalplan

Asingle-useplan

Standingplansareongoingplansthatprovide____________.

generaldirectionsofhowtoaccomplishanidentifiabletask

stakeholderswithidentifiablegoalsthattheorganizationwillalwaysstrivetoachieve

thestockholderswithidentifiablegoalsthattheorganizationwillalwaysstrivetoachieve

guidanceforactivitiesperformedrepeatedly

Acity’spolicyconcerningskateboardingondowntownsidewalksthatprovidesguidanceforpoliceactionwouldbeconsideredwhattypeofplan?

standing

contingency

directional

single-use

EstablishingGoalsandDevelopingPlans

Goalsprovidethedirectionforallmanagementdecisionsandactionsandformthe_____________.

profitbasisthattheorganizationswillaccomplishforstockholders

desiredoutcomesthattheorganizationalmemberswillachieve

basisforthesharingofprofitswiththeemployeesattheend

criteriaagainstwhichactualaccomplishmentsaremeasured

Withtraditionalgoalsetting,thegoalsaresetatthetoplevelofmanagementand_____________.

thentheybecometheresponsibilityoffirst-linemanagementtoachievethegoals

thentheyarebrokendownintosubgoalsforeachleveloftheorganization

alltheeffortstoachievethegoalsaredirectedbytopmanagementtoensurethattheyareachieved

thentheyaredelegatedtothenextlowerleveltobeachieved

Withtraditionalgoalsetting,theassumptionisthat_______________.

topmanagersknowwhatisbestbecausetheyseethe“bigpicture”

topmanagersareunfamiliarwithsettinggoals,solower-levelmanagersareassignedtodothetask

lower-levelmanagersunderstandmoreofwhatneedstobeaccomplished

lower-levelmanagersareincapableofsettinggoals

Withtraditionalgoalsetting,employees’workeffortsattheirrespectivelevelsandworkareasaregearedtomeetthegoals___________.

sothatthetopmanagementwillberetainedintheirposition

sothattheirimmediatesupervisorswillberetainedintheirposition

thathavebeenassignedintheirspecificareasofresponsibility

withintheshortestamountoftimepossible

Whathappenstotraditionalgoalsastheymaketheirwaydownfromtopmanagementtolowerlevels?

Theyloseclarityandunity.

Theyunitetheworkforce.

Lower-levelmanagersmustcontinuallyreviseandcorrectthem.

Theypurposelyremainvagueandnonspecific.

Whenthehierarchyoforganizationalgoalsisclearlydefined,itformsa____________.

hierarchical-linkchain

means-endschain

weakest-linkchain

level-levelchain

Managementbyobjectives(MBO)isamanagementsysteminwhichthefirststepsaresettingspecificperformancegoalsthatare_____________.

establishedthatcanbeeasilyaccomplished

jointlydeterminedbyemployeesandtheirmanagers

determinedbytopmanagementwithclaritysothattheobjectivesarecleartoeventhemostincompetentemployee

developedinsuchamannerthattheemployeesareself-directedanddonotneedsupervision

WhatisthefirststepinatypicalMBOprogram?

Majorobjectivesareallocatedamongdivisionalanddepartmentalunits.

Unitmanagerscollaborativelysetspecificobjectivesfortheirunitswiththeirmanagers.

Theorganization’soverallobjectivesandstrategiesareformulated.

Actionplansarespecifiedandagreeduponbymanagersandemployees.

IntheMBOsystem,___________.

objectivesaredeterminedbymanagement

goalsareonlyreviewedatthetimeofcompletion

goalsareusedascontrols

progresstowardobjectivesisperiodicallyreviewed

OneofthepotentialproblemsofMBOprogramsisthat____________.

theremaybeanoveremphasisbytheemployeeonaccomplishingtheirgoalswithoutregardstoothersintheworkunit

theymaybemoreeffectiveintimesofdynamicenvironmentalchange

employeestakegoalsettingtooseriously

theyencouragefillingoutpaperwork

Awell-designedgoalshouldbe____________.

shortandveryspecificaboutexpectedoutcomes

writtenintermsofoutcomesratherthanactions

identifiabletoeventhefirst-linesupervisors

specificandwithinamanageabletimeframe

Awell-designedgoalshouldbe____________.

discussedatorientation

nearlyunattainable,sothateveniftheunitoremployeemissestheirgoal,performanceisstillveryhigh

easytoachieve

clearastoatimeframe

Theprocessofwritinggoals_______________.

forcespeopletothinkthemthrough

istootimeconsuming

isuseless

inspiresinnovativeconcepts

Whatdowrittengoalsbecome?

oldanduseless

inflexibleandgeneral

visibleandtangible

personalandcollective

Whatisthepurposeofanorganizationcalled?

theorganization’sactionplan

theorganization’smission

theorganization’svision

theorganization’scontingencyplan

Whensettinggoals,whatshouldamanagerdoafterwritingdownthegoalsandcommunicatingthemtoallwhoneedtoknow?

determinethegoalsindividuallyorwithinputfromothers

evaluateavailableresources

reviewresultsandwhethergoalsaremet

reviewtheorganization’smission

Threecontingencyfactorsthataffectplanningarelengthintheorganization,degreeofenvironmentaluncertainty,and____________.

leveloffuturecommitments

quantityoffuturecommitments

frequencyoffuturecommitments

enforceabilityoffuturecommitments

____________planningdominatesmanagers’planningeffortsatlowerlevelsoftheorganization.

Strategic

Tactical

Operational

Functional

Thecommitmentconceptmeansthatplansshouldextendfarenoughtomeetthosecommitments__________.

asquicklyaspossible

whiletheresourcesareavailable

withthestakeholdersandmakeitappearthattheorganizationisreallycommitted

madewhentheplansweredeveloped

Planningfortoolongortooshortatimeperiod_______________.

iseffectiveplanning

isinefficientandineffective

istheconceptofcommitment

dependsontheorganization

Asorganizationsexpandandupdatetheircomputingtechnology,theyare_______________.

committedtowhateverfutureexpensesaregeneratedbythatplan

inastateofhighenvironmentaluncertainty

inastateoflowenvironmentaluncertainty

relyingonlowerlevelmanagementtodotheplanning

Howanorganizationplanscanbebestunderstoodbylookingat____________.

thegoalssetoutbytheorganization’splanners

whodoestheplanning

theflexibilityoftheorganization’splans

thepriorityofthegoals

Inthetraditionalapproachtoplanning,planningwasdoneentirelybytop-levelmanagerswhowereoftenassistedby____________.

businesslevelmanagers

functionallevelmanagers

amixtureofmanagersfromtheline,functional,andbusinesslevel

agroupofplanningspecialists

Whatisdefinedasagroupofplanningspecialistswhosesoleresponsibilitywashelpingtowritethevariousorganizationalplans?

traditionalplanningspecialists

organizationalplanningdepartment

formalplanningdepartment

missionwriters

Whencanthetraditionaltop-downapproachtoplanningbeeffective?

onlyifthedocumentslookimpressive

onlyifthedocumentsarepreparedforthecorporateplanningstaff

onlyiftheplanninginvolveslowerlevelmanagement

onlyifmanagersunderstandthattheymustcreateusabledocumentsthatmembersactuallyuse

Whenorganizationalmembersaremoreactivelyinvolvedinplanning,theyseethattheplans____________.

arenotasimportantasmanagementmakesthemouttobe

arehowthecompanyisgoingtobejudgedbythestockholders

aremorethanjustsomethingwrittendownonpaper

statedtostakeholdersaretherealplansthattheorganizationdesirestoachieve

ContemporaryIssuesinPlanning

Managerswhocontinuetodothethingsrequiredtoachievetheoriginalgoalsofaplan_______________.

arefollowingtheirintuition

aredemonstratingtheirabilitytofollowaflexibleandspecificplan

areactingresponsibly

maynotbeabletocopewithachangedenvironment

Whatisafrequentlycitedcriticismofformalplanning?

Planscan’tbedevelopedforadynamicenvironment.

Formalplanningistootimeconsuming,giventhedynamisminmodernbusinessenvironments.

Formalplanningcreatesextra,oftenredundantlevelsofhierarchywithintheorganization.

Formalplanningworkswellonlyforlarge,diversifiedcompanies.

Successfulorganizationsaretypicallytheresultofwhat?

flexibility

formalplanningefforts

innovativevision

mechanicalanalysis

Visionshaveatendencyto_______________astheyevolve.

becomeformalized

fail

generatemorecreativity

trapemployeesinacertainmindset

Formalplanningfocusesmanagers’attentiononwhat?

thechangingfuture

today’scompetition

tomorrow’ssurvival

yesterday’ssuccessesandfailures

Whatargumentagainstformalplanningindicatesthatconfidenceinaplanisdangerous?

Justplanningisn’tenough.

Formalplanningreinforcessuccess,whichmayleadtofailure.

Planningmaycreaterigidity.

Planscannotbedevelopedforadynamicenvironment.

AwirelessnetworkingtechnologycalledWi-Fithatlinkstogetherinformationdevicesis__________.

revolutionizingallkindsofindustries

makingorganizationalplanningmucheasier

complicatingtheplanningprocess,butwillbeimprovingcommunications

anintegralcomponentofplanningfortheFortune500companies

Inanuncertainenvironment,managerswanttodevelop_________plans.

generalandflexible

specificbutflexible

formal

contingency

Formalplansserveasaroadmapalthoughthedestinationmaybechangingconstantlydueto_______________.

dynamicmarketconditions

politicalchanges

managementchanges

employmentmakeup

Itis__________formalplanningeffortswhentheenvironmentishighlyuncertain.

notasimportanttocontinue

importanttoswitchtodirectionalplanningandcease

necessarytocease

importanttocontinue

Whydoesthepersistenceinplanningeffortscontributetosignificantperformanceimprovement?

Aftersomanytries,managershavetohitonasuccess.

Ifmanagersweardowntheemployeesenough,theirperformancewillimprove.

Thequalityofmanagers’planningimproveswhentheycontinuetodoit.

Managersdiscoverthattheirfocusshouldbeonthefutureinsteadofpresent.

Theorganizationalhierarchybecomesflattenedastheresponsibilityforestablishinggoalsanddevelopingplansis____________.

movedtothemiddleorganizationallevels

shovedtothelowestorganizationallevels

shiftedtoaformalplanningdepartment

moretheworkofthefinancialdepartment

ScenarioQuestions

Foreachofthefollowing,choosetheanswerthatmostcompletelyanswersthequestion.

WHATISPLANNING?

It’sAcademic(Scenario)

Youaretheacademicdeanforasmallliberalartscollege.Theuniversitypresidenthasaskedyoutodevelopaplanforthecollege.Hewantstheplantocoverthenext5years.Hewantsittobeasspecificaspossible,butitshouldleavesomeroomforflexibility.

Becauseyourplanwillhavespecificobjectivescoveringaperiodof5yearsalongwithspecificactionplansforachievingoftheseobjectives,yourplancouldbestbedescribedas______________.

contractual

formal

defined

standard

WHYDOMANAGERSPLAN?

It’sAcademic(Scenario)

Youaretheacademicdeanforasmallliberalartscollege.Theuniversitypresidenthasaskedyoutodevelopaplanforthecollege.Hewantstheplantocoverthenext5years.Hewantsittobeasspecificaspossible,butitshouldleavesomeroomforflexibility.

Thepresidenthasexpressedconcernregardingtheimpactofplanningontheabilityoftheorganizationaltorespondtoemergingchangesinthehighereducationenvironment,suchasdistancelearningandcorporateuniversities.Youshouldtellthepresidentthatplanning_______________.

forcesmanagerstolookatthepresent

forcesmanagerstoanticipatechange

eliminatestheconsiderationoftheimpactofchange

increasesuncertainty

HOWDOMANAGERSPLAN?

RetailPlanning(Scenario)

Mr.TylerNallispresidentandCEOofaretailchainthatisabouttobeginoperationsinnumerousmajorcitiesacrosstheUnitedStates.Thestoreswillsellhomefurnishingsthatareconsideredmoderatelypricedfortheaverage-incomebuyer.Duringthelastfewmonthshehasbeenworkingtolayoutdirectionsforthemanagersofthestores.Mr.Nallandhisvicepresidentshavedecidedthateachstoreshouldhavesalesequaltoorgreaterthan$100persquarefoot,perday.Toattractanadequatenumberofcustomers,thestoreshouldbewellmaintainedbothinsideandout.

TheprimarytaskthatMr.Nallandthevicepresidentshavebeenperformingduringthelastcoupleofmonthsisknownas____________.

layingoutideas

makingplans

establishingnetworks

designingthestores

Thestatementthateachstoreshouldhavesalesequaltoorgreaterthan$100persquarefoot,perdayisanexampleof___________.

aspecificplan

adirectionalplan

agoal

managementbyobjectives

Becausetheenvironmentalconditionsinwhichhomefurnishingstoresoperatearegenerallystable,thestatementsintendedtoattractcustomerswouldmostlikelybeconsideredtobe___________.

operationalplans

specificplans

directionalplans

strategicplans

Thestatementthatallstoresshouldbewellmaintainedbothinsideandoutisanexampleofa_________.

directionalplan

specificplan

statedgoal

realgoal

ABusinessPlan(Scenario)

Imaginethatyouaretheownerofasmallcompanythatsellstypewriters,businessequipment,andcomputerhardware.Youemployabout40people.Youknowthattheorganizationneedstomoveinadifferentdirection,andyouwanttosetsomelong-termgoalsforthecompany.Youwanttowriteaplanthatwillcoverthenext3yearsonly,knowingthatbusinessneedschangesomewhatfrequently.Yourgoalistowriteaplanthatprovidesdirectionbutdoesnotcontainextremelywell-defined,potentiallyrestrictiveobjectives.

Thefactthatyourplancovers3yearssuggeststhatyourplanismostconsistentwithwhattypeofplan?

specific

longterm

operational

strategic

Yourplanwillcovertheentireorganization.Thischaracteristicis

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