What is the central purpose of managerial planning?
A Set goals and specify means
B Review employee attendance
C Assign legal ownership
D Record past transactions
Answer: A. Set goals and specify means Planning establishes desired outcomes and specifies how managers intend to attain them.
Which pair appears in a complete plan?
A Goal and action statements
B Mission and office map
C Sales and tax returns
D Job titles and salaries
Answer: A. Goal and action statements Plans include outcome or goal statements and action statements that describe how to reach them.
How does an outcome statement differ from an action statement?
A Mission versus legal form
B Past result versus employee review
C Budget versus financial report
D Desired result versus actions
Answer: D. Desired result versus actions An outcome statement describes the result sought; an action statement describes the means for reaching it.
At the start of planning, what should managers review?
A Current conditions and commitments
B Only the last sales figure
C Future actions already completed
D Competitors’ private records
Answer: A. Current conditions and commitments Planning begins by understanding the current state, existing commitments, strengths, and weaknesses.
After reviewing present conditions, what should planners establish?
A A list of past errors
B Desired outcomes
C Permanent job assignments
D Final performance ratings
Answer: B. Desired outcomes Once the present situation is understood, planners establish goals or outcome statements.
During premising, what are managers defining?
A Final results already achieved
B Employee benefit entitlements
C A firm’s legal ownership
D Assumptions behind the plan
Answer: D. Assumptions behind the plan Premising makes explicit the assumptions about future events on which action statements will depend.
Why must planning assumptions be monitored?
A Plans cannot be revised
B Budgets replace all forecasts
C Future conditions may change
D Goals never need review
Answer: C. Future conditions may change Plans rest on assumptions about future events, so new information may require managers to update them.
Which information scan helps managers form planning assumptions?
A Supplier prices alone
B Only customer complaints
C Only last year’s budget
D Internal and external environments
Answer: D. Internal and external environments Managers scan both internal and external environments to anticipate events that may affect the plan.
When writing an action statement, what should planners specify?
A Past performance ratings
B What, when, how, and who
C Only the total budget
D Only the desired result
Answer: B. What, when, how, and who Action statements explain what must be done, when and how it will happen, and who will do it.
Before selecting a course of action, what should managers do?
A Avoid comparing likely outcomes
B Choose the first proposal
C Ignore resource requirements
D Evaluate alternatives against goals
Answer: D. Evaluate alternatives against goals Managers identify possible courses, assess how well each supports the goals, then select an option.
Once a major plan is chosen, why develop supportive plans?
A They remove assigned responsibilities
B They explain implementation details
C They replace the main goal
D They prevent future review
Answer: B. They explain implementation details Supportive or derivative plans provide additional detail needed to carry out the main plan.
Which plan sets broad, long-range direction for the whole organization?
A Department procedure
B Contingency checklist
C Strategic plan
D Daily work plan
Answer: C. Strategic plan Strategic planning addresses the organization’s broad direction and longer-term objectives.
How does tactical planning support strategy?
A Translates strategy into unit actions
B It records completed tasks
C It replaces organizational goals
D It handles only emergencies
Answer: A. It translates strategy into unit actions Tactical plans interpret broad strategic direction for a department, division, or other organizational unit.
For routine, near-term activities, which planning level is most relevant?
A Operational planning
B Strategic planning
C Merger planning
D Corporate ownership planning
Answer: A. Operational planning Operational plans set out specific near-term actions that guide day-to-day work.
What does a contingency plan prepare an organization to do?
A Repeat every routine task
B Respond to unexpected events
C Replace its mission statement
D Avoid setting any goals
Answer: B. Respond to unexpected events Contingency plans outline responses if an unexpected event makes the original plan unsuitable.
How should managers interpret a forecast used in planning?
A A substitute for objectives
B A permanent operating rule
C An estimate, not certainty
D A guaranteed future result
Answer: C. An estimate, not certainty Forecasts help managers anticipate possible conditions, but they remain estimates that should be reviewed.
In plan classification by use, what is a single-use plan designed for?
A A permanent company policy
B One-time, unique activity
C Repeated routine decisions
D Every year’s standard operations
Answer: B. One-time, unique activity Single-use plans address a particular project, program, or budget rather than recurring situations.
Which standing plan offers general guidance for recurring decisions?
A Temporary forecast
B Policy
C One-time project
D Annual event
Answer: B. Policy A policy is a standing plan that guides decisions while allowing some discretion.
When employees need a consistent sequence for recurring work, which plan helps?
A Procedure
B Mission statement
C Contingency forecast
D Strategic objective
Answer: A. Procedure Procedures describe an established sequence of steps for handling recurring activities.
How does a rule differ from a policy?
A It assigns long-term strategy
B It states a broad purpose
C It prescribes specific conduct
D It forecasts future demand
Answer: C. It prescribes specific conduct Rules specify a required or prohibited action more precisely than a general policy.
Which planning approach starts by choosing a specific desired outcome?
A Goal planning
B Routine scheduling
C Domain planning
D Crisis response planning
Answer: A. Goal planning Goal planning identifies a specific target first and then develops actions to achieve it.
Under high uncertainty, which approach can preserve direction without fixing one exact goal?
A Rule-based planning
B Domain or directional planning
C Single-use budgeting
D Daily scheduling
Answer: B. Domain or directional planning Domain or directional planning moves toward a broad domain that may contain several acceptable outcomes.
How does hybrid planning typically develop over time?
A Fixed rules, then fewer options
B Daily tasks, then no strategy
C Broad direction, then specific goals
D Past outcomes, then forecasts
Answer: C. Broad direction, then specific goals Hybrid planning begins with a broad direction, then narrows toward specific goals as knowledge improves.
Official organizational goals are often expressed as what?
A Broad public aims
B Daily employee task lists
C Detailed shift schedules
D Individual expense claims
Answer: A. Broad public aims Official goals are general aims expressed publicly, such as in statements or reports.
Operational goals are useful because they state what?
A Management’s concrete intentions
B A list of industry rivals
C A forecast with no target
D Only a public image
Answer: A. Management’s concrete intentions Operational goals describe specific intentions that organization members are expected to pursue.
Why should department goals support organization-wide goals?
A To make every target identical
B To align effort across levels
C To remove all local planning
D To eliminate manager discretion
Answer: B. To align effort across levels A network of aligned plans helps lower-level objectives contribute to the broader organizational goals.
Employees are told to improve service, but no service area is named. Which SMART criterion is most directly missing?
A Time-bound
B Achievable
C Specific
D Relevant
Answer: C. Specific A specific goal defines the intended improvement clearly enough for people to understand what is required.
No deadline is attached to an 8% waste-reduction target. Which SMART element is missing?
A Specific
B Time-bound
C Measurable
D Relevant
Answer: B. Time-bound A time-bound goal states when the result should be achieved.
If a target lacks realistic resources or capacity, which SMART element needs review?
A Time-bound
B Achievable
C Specific
D Relevant
Answer: B. Achievable An achievable target accounts for the resources and conditions that affect whether it can be reached.
Which SMART criterion is weakened when a measurable, realistic goal does not support organizational needs?
A Specific
B Time-bound
C Achievable
D Relevant
Answer: D. Relevant A relevant goal supports important organizational priorities rather than an unrelated result.
Which feature makes a goal easier to assess during implementation?
A A changing target
B An undefined end point
C A clear progress indicator
D A broad public slogan
Answer: C. A clear progress indicator A defined indicator lets managers compare progress with the intended outcome while work is underway.
When goals remain vague, what planning difficulty can result?
A Detailed actions become harder
B Alternatives disappear completely
C Budgets automatically improve
D Assumptions become unnecessary
Answer: A. Detailed actions become harder Vague goals make it difficult to create detailed action plans and evaluate progress.
What role can goals play in the controlling process?
A Reasons to stop monitoring
B Substitutes for actual results
C Standards for judging results
D Records of past assumptions
Answer: C. Standards for judging results Goals provide standards against which managers can compare actual activity and results.
In a highly uncertain environment, why might directional planning be preferable?
A No planning is needed
B It guarantees the forecast
C It fixes every action early
D It allows flexible goal choices
Answer: D. It allows flexible goal choices Directional planning can maintain a broad course while leaving room to choose specific goals as uncertainty falls.
Why should managers record the organization’s current position before acting?
A To fix every later decision
B To replace future assumptions
C To avoid measuring results
D To create a comparison baseline
Answer: D. To create a comparison baseline A baseline helps managers assess whether actions moved the organization toward its desired outcome.
Which details turn a goal into an actionable work assignment?
A Past sales and tax records
B Owner, timing, method, task
C Mission, logo, and slogan
D Only a target percentage
Answer: B. Owner, timing, method, task Action statements assign tasks, timing, methods, and responsible people so goals can be implemented.
At the course-of-action stage, what do planners do?
A Compare options and select one
B Create only a mission statement
C Publish final performance ratings
D Settle all future assumptions
Answer: A. Compare options and select one Planners identify alternatives, evaluate their likely contribution, and choose a course of action.
How can controlling inform the next planning cycle?
A It eliminates future uncertainty
B It prevents new information
C Results reveal needed adjustments
D It makes objectives irrelevant
Answer: C. Results reveal needed adjustments Monitoring results supplies information that helps managers revise the next round of plans.
Why monitor a plan after implementation begins?
A To avoid comparing outcomes
B To prevent employees reporting
C To keep assumptions hidden
D To spot deviations and adjust
Answer: D. To spot deviations and adjust Ongoing review reveals unexpected deviations and lets managers take corrective action.
Which issue can undermine an otherwise well-written plan?
A Regular progress reviews
B Clear action owners
C Aligned outcome statements
D Outdated assumptions
Answer: D. Outdated assumptions Plans can fail when assumptions about future events become inaccurate and managers do not update them.
How can planning improve coordination among departments?
A It hides unit priorities
B It provides a shared roadmap
C It removes interdependent tasks
D It ends communication needs
Answer: B. It provides a shared roadmap A coordinated plan connects activities, timing, and resources across organizational units.
What can an unclear objective make difficult to judge?
A Which products are patented
B Who owns the company
C Whether progress is adequate
D Where the office is located
Answer: C. Whether progress is adequate Clear outcomes allow managers and employees to understand expectations and assess progress.
In financial planning, what does a budget usually express?
A An informal team preference
B A list of job duties
C Expected resources in numbers
D A general mission statement
Answer: C. Expected resources in numbers Budgets quantify expected resources or financial outcomes for a defined plan or period.
When a disruption makes the main plan unusable, what should managers activate?
A A routine job description
B A completed annual report
C A contingency plan
D A standing slogan
Answer: C. A contingency plan A contingency plan provides an alternative response for an event that prevents the main plan from working.
While establishing planning premises, what information should managers scan?
A Internal and external conditions
B Only prior-period profits
C Competitors’ confidential files
D Only employee preferences
Answer: A. Internal and external conditions Internal and external information supports assumptions about events that may affect future results.
Which situation especially favors domain planning?
A Every target is already fixed
B No future choice is needed
C Work follows a routine
D Goals remain uncertain
Answer: D. Goals remain uncertain Directional planning is useful when goals are uncertain, flexibility is important, or the environment is unstable.
Which plan connects broad organizational direction with day-to-day operations?
A A customer complaint form
B A routine workplace rule
C A single-use task list
D Administrative plan
Answer: D. Administrative plan Administrative plans allocate resources and help connect institution-wide direction with the technical core.
How can communication affect a plan’s implementation?
A Goals no longer need measures
B Assigned people understand their actions
C Alternatives disappear
D Forecasts become certain
Answer: B. Assigned people understand their actions People responsible for action need to know the plan, their roles, timing, and required resources.
Which sequence describes the Deming cycle used for planning and learning?
A Plan, Do, Check, Act
B Set, Spend, Sell, Stop
C Lead, Hire, Pay, Retire
D Draft, Sign, File, Forget
Answer: A. Plan, Do, Check, Act The cycle creates a plan, implements it, checks results, and acts on what was learned.
After an unplanned event forces changes, what can reviewing the results help managers do?
A Preserve inaccurate assumptions
B Prevent every future change
C Remove contingency planning
D Learn and revise future plans
Answer: D. Learn and revise future plans Reviewing results helps managers identify which assumptions and actions need adjustment in the next planning cycle.