When Formal Planning Fails to Lead to Higher Performance, Which

question 16

Multiple Choice

When formal planning fails to lead to higher performance, which of the following is most likely to be the reason for the failure?

• A) A participative style of planning was used.
• B) Managers were allowed too much autonomy.
• C) The company emphasized the control function over other functions.
• D) Constraints of the external environment.

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Definitions:

Inconsistent Anchoring

A cognitive bias where individuals rely too heavily on an initial piece of information (anchor) to make subsequent judgments but inconsistently adjust away from that anchor.

Prospect Theory

A behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Matching Contribution

A contribution to a retirement plan, for instance, where an employer matches the employee's contribution up to a certain percentage.

Financial Well-Being

A state of being wherein an individual or family has control over their finances, can absorb a financial shock, is on track to meet financial goals, and has financial freedom to make choices that allow them to enjoy life.