Section 1: Concept of Planning
What is the primary purpose of planning in management?
a) To increase competition
b) To reduce costs
c) To set objectives and formulate action plans
d) To eliminate decision-making
Answer: c)Which term best describes planning?
a) Reactive
b) Forward-looking
c) Spontaneous
d) Past-oriented
Answer: b)What does planning seek to bridge the gap between?
a) Past and future
b) Resources and goals
c) Present position and desired position
d) Management and employees
Answer: c)
Section 2: Importance of Planning
How does planning provide direction?
a) By randomly allocating resources
b) By eliminating rules and procedures
c) By stating in advance how work is to be done
d) By reducing managerial involvement
Answer: c)Which is a major benefit of planning?
a) It guarantees success
b) It ensures perfect predictions
c) It reduces uncertainty
d) It eliminates competition
Answer: c)Which aspect of planning helps avoid overlapping and wasteful activities?
a) Setting objectives
b) Coordination of efforts
c) Decision-making
d) Forecasting
Answer: b)
Section 3: Features of Planning
Planning is considered the primary function of management because:
a) It involves all employees equally
b) It lays the foundation for other managerial functions
c) It guarantees cost reduction
d) It is only done by top management
Answer: b)Which feature of planning highlights its continuous nature?
a) It is time-consuming
b) It requires constant updates
c) It is limited to specific levels
d) It focuses only on immediate tasks
Answer: b)Planning involves:
a) Guesswork and assumptions
b) Logical and systematic thinking
c) Spontaneous actions
d) Routine tasks only
Answer: b)
Section 4: Limitations of Planning
Which limitation of planning occurs due to a pre-decided course of action?
a) High costs
b) Rigidity
c) Complexity
d) Time consumption
Answer: b)Why might planning not work in a dynamic environment?
a) It is too innovative
b) It assumes static conditions
c) It involves middle management only
d) It prioritizes competition over efficiency
Answer: b)Planning reduces creativity because:
a) Employees follow predefined plans
b) Managers encourage innovative ideas
c) It eliminates rules and procedures
d) Everyone is involved in decision-making
Answer: a)
Section 5: Planning Process
What is the first step in the planning process?
a) Evaluating alternatives
b) Setting objectives
c) Implementing plans
d) Developing assumptions
Answer: b)What does developing premises in planning involve?
a) Ignoring future uncertainties
b) Making assumptions about future conditions
c) Eliminating alternatives
d) Implementing immediate plans
Answer: b)Which step involves selecting the best course of action from alternatives?
a) Identifying alternatives
b) Setting objectives
c) Decision-making
d) Follow-up action
Answer: c)
Section 6: Types of Plans
What is the main focus of objectives as a type of plan?
a) Policies
b) Future positions
c) Resource allocation
d) Standing rules
Answer: b)A strategy is concerned with:
a) Routine tasks
b) Short-term goals
c) Defining long-term direction
d) Eliminating alternatives
Answer: c)What do rules as a type of plan represent?
a) Flexibility in decision-making
b) Specific mandatory actions
c) Suggestions for improvement
d) Strategic goals
Answer: b)Which type of plan involves quantifying future figures?
a) Programme
b) Rule
c) Budget
d) Policy
Answer: c)What is a single-use plan typically designed for?
a) Routine operations
b) Recurrent situations
c) One-time projects
d) Long-term objectives
Answer: c)
Section 7: Importance of Planning (Continued)
How does planning promote innovative ideas?
a) By eliminating creativity
b) By providing a structured foundation for new ideas
c) By focusing only on past performance
d) By ignoring potential risks
Answer: b)Which benefit of planning involves comparing actual performance with goals?
a) Facilitating decision-making
b) Establishing standards for controlling
c) Reducing risks of uncertainty
d) Reducing overlapping activities
Answer: b)Planning assists managers in decision-making by:
a) Eliminating alternatives
b) Providing future forecasts and alternatives
c) Encouraging spontaneous actions
d) Simplifying organizational hierarchy
Answer: b)
Section 8: Features of Planning (Continued)
What does it mean that planning is pervasive?
a) Planning is restricted to top management
b) Planning is required at all organizational levels
c) Planning focuses solely on external stakeholders
d) Planning is done only in crisis situations
Answer: b)What is the reason planning is considered futuristic?
a) It focuses on short-term goals
b) It relies on analyzing past trends
c) It prepares for anticipated future conditions
d) It involves immediate implementation of actions
Answer: c)Why is decision-making an integral part of planning?
a) Planning eliminates the need for decisions
b) Planning involves selecting the best alternative
c) Planning avoids exploring alternatives
d) Planning relies solely on top management
Answer: b)
Section 9: Limitations of Planning (Continued)
Which limitation of planning is linked to unforeseen events?
a) High costs
b) Rigidity
c) Failure in a dynamic environment
d) Reduced efficiency
Answer: c)Planning involves huge costs primarily due to:
a) Excessive resource allocation
b) Extensive analysis and preparation
c) Poor implementation of plans
d) Ignoring available alternatives
Answer: b)Why does planning not guarantee success?
a) It relies heavily on past success
b) It assumes flexibility in implementation
c) It involves dynamic execution only
d) It is based solely on subjective judgments
Answer: a)
Section 10: Planning Process (Continued)
What follows after setting objectives in the planning process?
a) Developing premises
b) Evaluating alternatives
c) Implementing the plan
d) Monitoring performance
Answer: a)What is the purpose of follow-up action in the planning process?
a) To eliminate deviations
b) To monitor and ensure objectives are achieved
c) To revise objectives
d) To prepare alternative plans
Answer: b)Which step in the planning process requires evaluating pros and cons of alternatives?
a) Setting objectives
b) Developing premises
c) Evaluating alternative courses
d) Implementing the plan
Answer: c)What is the final step in the planning process?
a) Selecting alternatives
b) Implementing the plan
c) Follow-up action
d) Evaluating performance
Answer: c)
Section 11: Types of Plans (Continued)
What is a policy in the context of planning?
a) A mandatory rule for employees
b) A general guide for managerial decisions
c) A one-time financial plan
d) A set of rigid procedures
Answer: b)Which type of plan provides detailed steps for performing tasks?
a) Rules
b) Methods
c) Strategies
d) Procedures
Answer: d)What distinguishes standing plans from single-use plans?
a) Standing plans are created for recurring activities
b) Standing plans are limited to financial objectives
c) Single-use plans have a broader scope
d) Single-use plans are for long-term goals
Answer: a)Which type of plan is used to define the allocation of resources for achieving objectives?
a) Policy
b) Programme
c) Strategy
d) Budget
Answer: d)Which example fits a single-use plan?
a) Recruitment policy
b) Budget for an annual event
c) Procedure for filing employee grievances
d) Safety regulations in a factory
Answer: b)
Section 12: Applications of Planning
A company's marketing strategy must address which of the following?
a) Employee roles and responsibilities
b) Distribution channels and pricing policy
c) Legal compliance only
d) Operational efficiency measures
Answer: b)Why are objectives considered the cornerstone of planning?
a) They replace other functions of management
b) They define desired results and guide actions
c) They are limited to short-term goals
d) They involve routine decisions only
Answer: b)What is the main difference between a programme and a policy?
a) Programmes are broad, policies are specific
b) Policies guide actions, programmes detail execution
c) Policies focus on costs, programmes on resources
d) Programmes are recurring, policies are one-time
Answer: b)
Section 13: Features of Planning (Continued)
Which feature of planning ensures its application at all organizational levels?
a) Planning is futuristic
b) Planning is pervasive
c) Planning is a mental exercise
d) Planning is primary
Answer: b)Why is planning considered a mental exercise?
a) It involves physical coordination
b) It requires foresight, imagination, and logical thinking
c) It eliminates the need for decision-making
d) It focuses on routine activities
Answer: b)What ensures planning's relevance and continuity?
a) Reviewing and updating plans regularly
b) Avoiding changes to existing plans
c) Keeping plans confidential
d) Eliminating the planning cycle
Answer: a)
Section 14: Importance of Planning (Continued)
How does planning reduce the risk of uncertainty?
a) By eliminating competitors
b) By preparing forecasts and strategies for unforeseen events
c) By depending on past experiences
d) By increasing managerial involvement
Answer: b)What is a key role of planning in resource management?
a) Ignoring time constraints
b) Allocating resources efficiently
c) Avoiding innovation
d) Reducing departmental coordination
Answer: b)Which benefit of planning aids in creating standards for controlling?
a) Establishing measurable objectives
b) Developing alternative courses of action
c) Setting flexible rules and procedures
d) Avoiding future forecasts
Answer: a)
Section 15: Limitations of Planning (Continued)
Why is planning considered time-consuming?
a) It requires immediate action
b) It involves thorough evaluation of alternatives
c) It avoids long-term analysis
d) It emphasizes rigid implementation
Answer: b)What impact does over-reliance on past plans have?
a) Encourages creativity
b) Leads to complacency
c) Improves decision-making
d) Reduces costs
Answer: b)Which limitation arises when planning cannot foresee future events?
a) Planning is expensive
b) Planning is time-consuming
c) Planning fails in dynamic environments
d) Planning reduces creativity
Answer: c)
Section 16: Planning Process (Continued)
What does the step "developing premises" in planning involve?
a) Creating rigid rules
b) Making assumptions about future conditions
c) Implementing the selected course of action
d) Avoiding alternative courses
Answer: b)How are alternative courses of action identified in planning?
a) By avoiding innovative methods
b) By evaluating routine options
c) By considering diverse approaches to achieve objectives
d) By focusing solely on organizational rules
Answer: c)What happens after selecting the best alternative in planning?
a) Setting new objectives
b) Implementing the plan
c) Revising assumptions
d) Developing additional courses of action
Answer: b)
Section 17: Types of Plans (Continued)
Which type of plan provides guidance for routine decision-making?
a) Programme
b) Policy
c) Budget
d) Rule
Answer: b)Which plan is specifically used for recurring situations?
a) Single-use plan
b) Programme
c) Standing plan
d) Strategy
Answer: c)A rule can be defined as:
a) A general guide for managerial decisions
b) A specific statement that must be followed
c) A method of performing tasks
d) A one-time project guideline
Answer: b)What is a major characteristic of a budget as a type of plan?
a) It is flexible in application
b) It is expressed in numerical terms
c) It avoids financial assumptions
d) It eliminates forecasting
Answer: b)What distinguishes a strategy from other types of plans?
a) It focuses on day-to-day tasks
b) It outlines long-term resource allocation and direction
c) It eliminates decision-making
d) It involves fixed operational rules
Answer: b)
Section 18: Applications of Planning (Continued)
Why are procedures important in planning?
a) They provide a framework for top management
b) They detail the steps required to perform specific tasks
c) They replace all organizational policies
d) They are rarely updated
Answer: b)What is an example of a standing plan?
a) Organizing a one-day seminar
b) Creating a monthly production budget
c) Implementing an HR recruitment policy
d) Launching a marketing campaign for a specific product
Answer: c)How does planning contribute to better resource allocation?
a) By promoting flexibility in policies
b) By defining objectives and setting priorities
c) By avoiding the use of budgets
d) By focusing solely on rules
Answer: b)
Section 19: Case Scenarios and Analysis
A company planning to increase its market share would prioritize which type of plan?
a) Procedure
b) Strategy
c) Rule
d) Method
Answer: b)If a business organizes an annual event, what type of plan would it require?
a) Standing plan
b) Single-use plan
c) Policy
d) Strategy
Answer: b)Which step in the planning process would involve creating a production schedule?
a) Setting objectives
b) Implementing the plan
c) Identifying alternatives
d) Developing premises
Answer: b)
Section 20: Features of Planning (Continued)
What does it mean when we say planning is "forward-looking"?
a) It focuses on past achievements
b) It prepares for future uncertainties
c) It avoids the use of forecasts
d) It emphasizes only current problems
Answer: b)Which feature of planning ensures that it involves alternatives?
a) Planning is pervasive
b) Planning involves decision-making
c) Planning is futuristic
d) Planning focuses on objectives
Answer: b)Why is planning considered the foundation of management?
a) It eliminates the need for other managerial functions
b) It provides a base for organizing, staffing, and controlling
c) It is the only function performed by top management
d) It requires minimal effort and resources
Answer: b)
Section 21: Planning Process (Continued)
Which step in planning involves making detailed assumptions about future trends?
a) Setting objectives
b) Developing premises
c) Evaluating alternatives
d) Implementing the plan
Answer: b)Why is the selection of an alternative considered a crucial part of planning?
a) It simplifies decision-making
b) It determines the course of action to be implemented
c) It reduces the need for future plans
d) It focuses on short-term results only
Answer: b)What does follow-up action ensure in the planning process?
a) Objectives are modified
b) The implementation phase is skipped
c) Plans are executed and monitored effectively
d) Assumptions are avoided
Answer: c)
Section 22: Limitations of Planning (Continued)
What is a key factor contributing to the rigidity of plans?
a) Over-reliance on external forecasts
b) Lack of flexibility to adapt to changes
c) Continuous involvement of middle management
d) High costs associated with implementation
Answer: b)How does planning limit creativity within an organization?
a) By focusing only on financial aspects
b) By restricting employees to pre-defined procedures
c) By eliminating alternatives
d) By prioritizing innovation over rules
Answer: b)Why can planning sometimes be considered a waste of time?
a) It eliminates other managerial functions
b) It is not implemented immediately
c) It takes longer than necessary to formulate plans
d) It does not guarantee success
Answer: d)
Section 23: Types of Plans (Continued)
Which type of plan provides specific guidelines for decision-making?
a) Method
b) Rule
c) Policy
d) Programme
Answer: c)What is the primary difference between a rule and a procedure?
a) Rules are mandatory, procedures are optional
b) Rules define specific actions, procedures detail the steps to perform them
c) Procedures are broader than rules
d) Rules are flexible, procedures are rigid
Answer: b)What type of plan involves a sequence of actions for achieving specific goals?
a) Strategy
b) Programme
c) Budget
d) Policy
Answer: b)Which type of plan would include financial forecasts for the next fiscal year?
a) Programme
b) Budget
c) Strategy
d) Policy
Answer: b)What is a key characteristic of a strategy?
a) It focuses on short-term results
b) It addresses broad organizational goals
c) It replaces other types of plans
d) It requires minimal resource allocation
Answer: b)
Section 24: Applications of Planning (Continued)
Why are budgets critical in planning?
a) They simplify routine activities
b) They quantify objectives in numerical terms
c) They replace organizational rules
d) They ensure fixed outcomes
Answer: b)A company adopting a "no smoking" policy is implementing which type of plan?
a) Budget
b) Rule
c) Procedure
d) Programme
Answer: b)What distinguishes a programme from a policy?
a) Programmes focus on routine decisions
b) Programmes detail actions, policies guide decision-making
c) Policies are numerical, programmes are qualitative
d) Policies address one-time events
Answer: b)
Section 25: Case Scenarios
A company aims to expand into international markets. What type of plan is this?
a) Standing plan
b) Strategy
c) Rule
d) Procedure
Answer: b)If a firm decides to make all payments electronically, what type of plan is this?
a) Rule
b) Programme
c) Procedure
d) Policy
Answer: a)What type of plan involves a long-term goal to become market leader in 5 years?
a) Method
b) Objective
c) Programme
d) Rule
Answer: b)Which step in the planning process would involve preparing a contingency plan?
a) Developing premises
b) Identifying alternative courses of action
c) Evaluating alternatives
d) Follow-up action
Answer: b)A production schedule for the next quarter is an example of what?
a) Budget
b) Objective
c) Procedure
d) Single-use plan
Answer: c)
Section 26: Real-World Applications
What type of plan is a marketing budget for an advertising campaign?
a) Policy
b) Single-use plan
c) Standing plan
d) Rule
Answer: b)Which type of plan is most relevant for day-to-day operational decisions?
a) Standing plans
b) Strategy
c) Programme
d) Budget
Answer: a)When an organization decides on a long-term pricing approach, what is it called?
a) Programme
b) Policy
c) Rule
d) Strategy
Answer: b)A plan outlining steps for recruiting employees is an example of:
a) Rule
b) Policy
c) Procedure
d) Objective
Answer: c)
Section 27: Miscellaneous
A statement of expected results in numerical terms is called a:
a) Policy
b) Budget
c) Programme
d) Strategy
Answer: b)Which type of plan focuses on avoiding conflicts in daily operations?
a) Rule
b) Standing plan
c) Programme
d) Budget
Answer: b)A company's plan to launch a new product line is an example of:
a) Strategy
b) Procedure
c) Rule
d) Budget
Answer: a)What type of plan helps set measurable goals for the next year?
a) Objective
b) Rule
c) Programme
d) Strategy
Answer: a)A detailed course of action for opening a new branch is called a:
a) Single-use plan
b) Standing plan
c) Policy
d) Rule
Answer: a)What type of plan determines the sequence of actions?
a) Rule
b) Procedure
c) Strategy
d) Objective
Answer: b)When a company decides how to allocate its budget among projects, it is using:
a) Rule
b) Budget
c) Strategy
d) Policy
Answer: b)The detailed plan for launching a new marketing campaign is a:
a) Policy
b) Programme
c) Rule
d) Objective
Answer: b)What type of plan is concerned with defining acceptable behavior within the organization?
a) Rule
b) Objective
c) Programme
d) Procedure
Answer: a)A standing plan focusing on consistent decision-making is known as:
a) Policy
b) Objective
c) Strategy
d) Budget
Answer: a)
No comments:
Post a Comment