Planning

Topics in this chapter

• Planning Concept and Features
• Planning Importance and Limitations
• Planning Process and Premises
• Objectives and Strategy
• Standing Plans
• Single-Use Plans
• Planning, Decision-Making and Control

Cheat sheet

Practice questions

1. Question 1Q-0E4C85

   Which statement most accurately describes planning in management?

   1. A.It involves assigning jobs to employees after work has been completed.
   2. B.It involves deciding in advance what is to be done, how it is to be done, when it is to be done and by whom.
   3. C.It involves comparing actual performance with planned performance only.
   4. D.It involves recruiting and selecting employees for different jobs.
   See the answer and solution
2. Question 2Q-04777E

   A smartphone company decides to enter tier-2 towns by selling affordable phones through online platforms and establishing local service centres. This comprehensive plan to achieve its objectives is an example of a:

   1. A.Policy
   2. B.Procedure
   3. C.Budget
   4. D.Strategy
   See the answer and solution
3. Question 3Q-5E1C8F

   A company prepares a detailed five-year plan, but a sudden change in government regulations makes its planned production process unsuitable. Management must substantially revise the plan. Which limitation of planning is most directly illustrated?

   1. A.Planning may not work in a dynamic environment.
   2. B.Planning makes objectives impossible to communicate.
   3. C.Planning completely eliminates business risk.
   4. D.Planning always reduces the cost of decision-making.
   See the answer and solution
4. Question 4Q-36D18C

   Explain any two limitations of planning.

   See the answer and solution
5. Question 5Q-F45E21

   A production manager first decides the quantity and quality targets to be achieved by the department for the next quarter. Which characteristic of planning is reflected in this action?

   1. A.Planning focuses on achieving predetermined objectives.
   2. B.Planning eliminates all business risks.
   3. C.Planning is required only at the top level of management.
   4. D.Planning is concerned only with past performance.
   See the answer and solution