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Several research studies have conclusively proven that planning organizations always outperform non-planning organizations.

A) True
B) False

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Which one of the following is the first step in MBO?


A) The organization's overall objectives and strategies are formulated.
B) Unit managers collaboratively set specific objectives for their units with their managers.
C) Action plans are specified and agreed upon by managers and employees.
D) Major objectives are allocated among divisional and departmental units.

E) B) and C)
F) B) and D)

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What is competitor intelligence? Identify some of the sources of competitor intelligence. Discuss the legal and ethical issues related to this concept.

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Competitor intelligence involves gatheri...

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Distinguish between the stated and the real goals of an organization. Illustrate the difference with an example.

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An organization's stated goals are official statements of what an organization says, and what it wants its stakeholders to believe, its goals are. However, stated goals-which can be found in an organization's charter, annual report, public relations announcements, or in public statements made by managers-are often conflicting and influenced by what various stakeholders think organizations should do. Such statements are vague and probably better represent management's public relations skills than being meaningful guides to what the organization is actually trying to accomplish. It shouldn't be surprising then to find that an organization's stated goals are often irrelevant to what actually goes on. If you want to know an organization's real goals-those goals an organization actually pursues-observe what organizational members are doing. Actions define priorities. For example, a company may publicly commit to increasing worker participation in management, while actually practicing a hierarchical, top-down approach. Knowing that real and stated goals may differ is important for recognizing what you might otherwise think are inconsistencies.

A manager's analysis of the external environment can be improved by ________, which involves screening information to detect emerging trends.


A) environmental scanning
B) environmental activism
C) critical path analysis
D) social screening

E) A) and B)
F) B) and C)

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The first step in goal setting is to evaluate available resources.

A) True
B) False

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Which one of the following is the last step in MBO?


A) Progress toward objectives is periodically reviewed, and feedback is provided.
B) The organization's overall objectives and strategies are formulated.
C) Successful achievement of objectives is reinforced by performance-based rewards.
D) Action plans are implemented.

E) C) and D)
F) A) and C)

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C

Dynamic environments require a flatter organizational hierarchy in order to plan effectively.

A) True
B) False

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Which of the following is an example of a single-use plan?


A) affirmative action hiring policies of a company
B) a plan developed to install a new computer network
C) the procedure to be followed for firing low-performing employees
D) a plan developed to ensure worker safety at the company's facilities

E) All of the above
F) B) and C)

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Which is the first step managers should follow in goal setting?


A) evaluating available resources
B) determining goals individually or with input from others
C) writing down goals and communicating them to all who need to know
D) reviewing the organization's mission

E) B) and C)
F) All of the above

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In traditional goal setting, goals set by top managers flow down through the organization and become subgoals for each organizational area.

A) True
B) False

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When organizational members are more actively involved in planning, the probability that the plan will be used increases.

A) True
B) False

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Which one of the following is among the reasons why managers should plan?


A) When work activities are coordinated around plans, inefficiencies become obvious.
B) Uncertainty can be eliminated and the organization can be insulated from change with planning.
C) Planning eliminates the need to set goals.
D) Planning eliminates the need to measure work effort.

E) A) and B)
F) C) and D)

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________ plans are clearly defined and leave no room for interpretation.


A) Directional
B) Stated
C) Long-term
D) Specific

E) A) and D)
F) A) and C)

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The commitment concept says that plans should ________.


A) extend far enough to meet those commitments made when the plans were developed
B) be done for as long a time period as possible
C) be done for as short a time period as possible
D) not commit to specifically meeting the goals made when the plans were developed

E) A) and B)
F) A) and C)

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________ plans apply to the entire organization and establish the organization's overall goals.


A) Departmental
B) Strategic
C) Operational
D) Long-term

E) All of the above
F) A) and C)

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Cloud computing allows managers to store data in a secret part of their computers that is hack-proof.

A) True
B) False

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Which aspect of planning refers to documents that outline how results are to be achieved?


A) goals
B) plans
C) objectives
D) performance guidelines

E) A) and B)
F) None of the above

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B

Williamson is the owner of a small company that sells corporate gifts through an online store. Business has slowed down in recent months and he realizes that the organization must move in a different direction if it is to survive. He has reset some of the company's overall goals and wants to develop a plan to achieve those goals. He is anticipating the business environment to be volatile for the next few years. Considering the above information, it can be determined that his plan must be ________, ________, and ________.


A) operational; directional; rigid
B) informal; unwritten; flexible
C) strategic; general; rigid
D) strategic; directional; flexible

E) A) and B)
F) B) and D)

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When uncertainty is high and managers must be flexible in order to respond to unexpected changes, directional plans are preferable.

A) True
B) False

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