Foundations of Planning Quiz

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10 Questions

What is the characteristic of directional plans?

They have clearly defined objectives

Which of the following statements about operational plans is TRUE?

They cover short-term goals only

What is a key element of an MBO program?

Loose and non-specific goals

What is the impact of dynamic environmental change on well-designed action plans?

Enhances organizational performance

What is the effect of setting goals that are too easy to accomplish?

They are motivating

Which of the following statements about planning is FALSE?

Even without planning, departments and individuals always work together, allowing organizations to move efficiently toward its goals.

Which of the following best describes the foundation of organizational planning?

Goals are the foundation of organizational planning.

What is the difference between goals and objectives in the planning process?

Goals focus on long-term outcomes, while objectives are specific, measurable targets that must be achieved.

Which statement is FALSE about organizational goals?

Most businesses have only one objective: to make a profit.

What is the primary concern of planning?

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

Study Notes

Planning and Goal Setting

  • Directional plans have a general direction or intentions but lack specific details.

Operational Plans

  • Operational plans are TRUE in that they focus on implementing specific tasks and activities.

Management by Objectives (MBO)

  • A key element of an MBO program is setting specific, measurable, achievable, relevant, and time-bound (SMART) goals.

Environmental Change and Planning

  • Dynamic environmental change can make well-designed action plans obsolete, requiring adjustments to stay relevant.

Goal Setting

  • Setting goals that are too easy to accomplish can lead to complacency and underutilization of resources.
  • Planning is FALSE in that it is not solely focused on making decisions.
  • The foundation of organizational planning is based on the organization's mission and vision.

Goals and Objectives

  • Goals are broad, long-term desired outcomes, while objectives are specific, measurable, and achievable milestones.
  • FALSE about organizational goals: they are always specific and measurable.

Planning Concerns

  • The primary concern of planning is to allocate resources effectively to achieve organizational goals.

Test your knowledge of the foundations of planning with this quiz based on Management, 10e (Robbins) Chapter 7. Answer questions about the purpose of planning, its impact on management, and the coordination of departments and individuals.

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