Answer to Question 1
Answer: Three contingency factors affect planning: level in the organization, degree of environmental uncertainty, and length of future commitments. The planner's level in the organization is likely to determine whether the plan is more strategic versus more operational. For the most part, operational planning dominates managers' planning at lower levels of the organization, while at upper levels, planning is more strategy oriented. Environmental uncertainty is the second contingency factor. When uncertainty is high, plans should be specific, but more flexible. Under these conditions, managers may sometimes need to abandon an existing plan in favor of a new one. Under low uncertainty, management is more likely to adhere to existing plans. Lastly, the time frame of existing plans is likely to influence new and emerging plans. The more current plans affect future commitments, the longer the time frame is for which managers must plan.
Answer to Question 2
Answer: B
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