Foundations of Planning: Chapter 7 Quiz

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Questions and Answers

What is the relationship between planning and performance according to studies?

Planning has been shown to positively impact performance (correct)

Planning has been shown to negatively impact performance

The impact of planning on performance varies depending on the industry

There is no relationship between planning and performance

What are the types of goals organizations might have?

Unrealistic and Achievable

Random and Chaotic

Tangible and Intangible

Short-term and Long-term (correct)

What is the primary purpose of planning in an organization?

To set goals and develop plans (correct)

To discourage employees from achieving their objectives

To create chaos and confusion

To increase inefficiency and waste resources

How do traditional goal setting and MBO work?

They align individual goals with organizational objectives Signup and view all the answers

How can managers effectively plan in today’s dynamic environment?

By embracing adaptability and flexibility in planning Signup and view all the answers

What are the criticisms of planning?

It limits creativity and flexibility Signup and view all the answers

What is a primary managerial activity that involves defining the organization’s goals, establishing an overall strategy, and developing plans for organizational work activities?

Planning Signup and view all the answers

Which type of planning covers specific goals that are written and shared with organizational members?

Formal planning Signup and view all the answers

What is the main purpose of planning?

Reducing uncertainty Signup and view all the answers

What type of plan applies to the entire organization and establishes the organization’s overall goals?

Strategic plans Signup and view all the answers

What type of goal is related to the expected internal financial performance of the organization?

Financial goal Signup and view all the answers

Which factor affects performance more than the extent of planning, according to the relationship between planning and performance?

Quality of planning and implementation Signup and view all the answers

What type of plans cover extended periods of time and establish the organization’s overall goals?

Long-term plans Signup and view all the answers

What are desired outcomes for individuals, groups, or entire organizations that provide direction and evaluation performance criteria?

Objectives Signup and view all the answers

What must be used for several years before it begins to affect performance?

Formal planning Signup and view all the answers

What type of plan specifies the details of how the overall goals are to be achieved and covers a short time period?

Operational plans Signup and view all the answers

Study Notes

Planning and Performance

Research has shown that planning has a positive relationship with organizational performance.
However, the extent of planning is not the most significant factor affecting performance; other factors, such as the quality of planning, have a greater impact.

Types of Goals and Planning

Organizations may have different types of goals, including:
- Strategic goals, which relate to the organization's overall mission and objectives
- Tactical goals, which are specific and focused on achieving specific objectives
There are two main types of planning:
- Strategic planning, which covers the entire organization and establishes overall goals
- Operational planning, which specifies the details of how the overall goals are to be achieved and covers a short time period

Purpose of Planning

The primary purpose of planning is to define the organization's goals, establish an overall strategy, and develop plans for organizational work activities.

Traditional Goal Setting and MBO

Traditional goal setting involves setting specific, measurable, achievable, relevant, and time-bound (SMART) goals.
Management by Objectives (MBO) is a goal-setting approach that involves:
- Setting specific, measurable goals
- Establishing key performance indicators (KPIs)
- Regularly reviewing and feedback

Effective Planning in Dynamic Environments

To plan effectively in today's dynamic environment, managers must:
- Be flexible and adaptable
- Monitor and respond to changes in the environment
- Involve employees in the planning process

Criticisms of Planning

Planning has been criticized for:
- Being too rigid and inflexible
- Focusing on short-term goals rather than long-term objectives
- Being detached from reality

Managing by Objectives

MBO involves setting specific, measurable, achievable, relevant, and time-bound (SMART) goals.
Goals are written and shared with organizational members to provide direction and evaluation criteria.

Planning and Goal Setting

Long-range plans cover extended periods of time and establish the organization's overall goals.
Goals are desired outcomes for individuals, groups, or entire organizations that provide direction and evaluation performance criteria.

Goal Categories

Financial goals are related to the expected internal financial performance of the organization.

Planning Effectiveness

Planning must be used consistently for several years before it begins to affect performance.

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Description

Test your knowledge on the foundations of planning with this quiz based on Chapter 7 of 'Management' by Stephen P. Robbins and Mary Coulter. Questions cover topics such as the definition and purposes of planning, the relationship between planning and performance, as well as types of goals and plans.