Answer to Question 1
Answer: B
Answer to Question 2
Answer: In an uncertain environment, managers want to develop plans that are specific, but flexible. Although this may seem contradictory, it's not. To be useful, plans need some specificity, but the plans should not be cast in stone. Managers must recognize that planning is an ongoing process. The plans serve as a roadmap although the destination may be changing constantly due to dynamic market conditions. They should be willing to change directions if environmental conditions warrant. This flexibility is particularly important as plans are implemented. Managers must stay alert to environmental changes that could impact the effective implementation of plans and make changes as needed. Keep in mind, also, that it's important to continue formal planning efforts, even when the environment is highly uncertain, in order to see any effect on organizational performance. It's the persistence in planning efforts that contributes to significant performance improvement. It seems that, as with most activities, managers learn to plan and the quality of their planning improves when they continue to do it. Finally, effective planning in dynamic environments means flattening the organizational hierarchy as the responsibility for establishing goals and developing plans is shoved to lower organizational levels because there's little time for goals and plans to flow down from the top. Managers must train their employees in setting goals and establishing plans and then trust that they will do so.
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