Skip to content

CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

Which statement about the planning function is correct?

Planning is pervasive, meaning managers at every level and in every department must plan, although the scope and time horizon differ. It is forward-looking and only reduces uncertainty without removing it, so the claims of top-level-only, backward-looking or uncertainty-free planning are incorrect.

  1. APlanning is needed only at the top level of management
  2. BPlanning is a backward-looking activity based on past results alone
  3. CPlanning is pervasive, as it is required at every level of management and in every departmentCorrect
  4. DPlanning removes uncertainty from the future completely

Explanation

Pervasiveness is a recognised feature of planning: all managers at all levels plan, though scope differs. Planning looks ahead, though it uses past data. It reduces but cannot eliminate uncertainty, so the other statements are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Planning, Organizing, Staffing and Leading shows your real accuracy, how long you take and where you lose marks.

Practise Planning, Organizing, Staffing and LeadingFree diagnostic mock

More Planning, Organizing, Staffing and Leading questions