3.10 Planning Flashcards
What is planning in management?
Planning occurs when management looks to the future and sets specific goals for the business. The manager must put strategies in place to achieve these goals. It reduces risk.
What does SMART stand for in planning?
SMART stands for Specific, Measurable, Achievable, Relevant, and Timed.
What does ‘Specific’ mean in SMART planning?
‘Specific’ means the goal must clearly state its aim and everyone must understand it.
What does ‘Measurable’ mean in SMART planning?
‘Measurable’ means there should be evidence the goal has been achieved, such as measured in units, sales, or percentage.
What does ‘Achievable’ mean in SMART planning?
‘Achievable’ means the goal must be realistic and should challenge the business to achieve it.
What does ‘Relevant’ mean in SMART planning?
‘Relevant’ means the goal must be relevant to the overall business goals.
What does ‘Timed’ mean in SMART planning?
‘Timed’ means the goal must have a target date for when it is to be achieved.
What are the steps in the planning process?
- Access current situation (SWOT analysis). 2. Set a goal (SMART). 3. Create a plan (e.g., strategic plans). 4. Implement plan (communicate to staff). 5. Review the plan (ensure progress and take corrective action).
What is a SWOT analysis?
A SWOT analysis is an assessment tool used by management to assess a firm in terms of its strengths, weaknesses, opportunities, and threats.
What is a mission statement?
A mission statement is a short written statement that sets out the firm’s overall main goals and objectives for the lifetime of the business.
What are the types of plans in management?
Types of plans include strategic plans, tactical plans, operational plans, contingency plans, manpower plans, and financial plans.
What are strategic plans?
Strategic plans are long-term plans set by senior management that break down the firm’s mission statement into long-term business plans.
What are tactical plans?
Tactical plans are short-term plans set by middle management that break down strategic plans into short-term plans.
What are operational plans?
Operational plans are plans set by all management levels for the day-to-day running of the business.
What are contingency plans?
Contingency plans are backup plans used to deal with unforeseen events or emergencies.
What are manpower plans?
Manpower plans are set by HRM to ensure the business has the correct number of employees with the right skills and qualifications.
What is a financial plan?
A financial plan is set by the financial manager to prepare a cash flow forecast predicting income and expenses over a specific period.
How does planning impact stakeholders?
Planning impacts stakeholders by providing financial assurance to investors, motivating employees through HR planning, and indicating expansion opportunities to suppliers.
What are the benefits of planning?
Benefits of planning include benchmarking progress, easier access to finance, problem identification, risk reduction, and increased employee motivation.
