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Rational decision making

is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions

Which of the following is NOT one of the rules for effective brainstorming?

Select an open-minded group leader

One of the benefits of planning is how it

encourages people to work harder for extended periods

Management by objectives (MBO) is a management technique often used to develop and carry out

tactical plans

Middle managemen

is responsible for developing strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years


A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).

A manufacturer of suntan lotion could set a(n) ____ goal to increase revenues by 8 percent over the next five years and a(n) ____ goal to increase sales next June in Miami Beach by 3 percent.

distal; proximal

which of the following is a pitfall of planning?

a false sense of certainty based on faulty assumptions

Top management is responsible for developing long-term ____ that make clear how the company will serve customers and position itself against competitors in the next two to five years.

strategic plans

A department store is experiencing greater than usual shrinkage, and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a(n) ____ plan.


The last step in effective planning is to ____.

maintain flexibility in planning

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