BMEC (FINALS)

Question 1

involves defining the organization’s goals, establishing an overall strategy for achieving these goals, and developing plans for organizational work activities.

Answer 1

Planning

Question 2

Purposes of Planning

Answer 2

1. Planning gives direction to managers and nonmanagers of an
   organization.
2. Planning reduces uncertainty.
3. Planning minimizes waste and uncertainty.
4. Planning establishes goals or standards used in controlling.

Question 3

Elements of Planning

Answer 3

Goals and Plan

Question 4

 Desired outcomes for individuals, groups, or entire organizations
 Provide direction and evaluation performance criteria

Answer 4

GOALS

Question 5

 Documents that outline how goals are to be accomplished
 Describe how resources are to be allocated and establish activity
schedules

Answer 5

PLAN

Question 6

Are related to the expected internal financial performance of the organization.

Answer 6

Financial goals

Question 7

Are related to the performance of the firm relative to factors in its external environment (e.g., competitors).

Answer 7

Strategic goals

Question 8

are those that an organization actually pursues, as defined by the actions of its members.

Answer 8

Real goals

Question 9

are official statements of what an organization says and what it wants its various stakeholders to believe its goals are.

Answer 9

Stated goals

Question 10

Strategic versus operational plans.

Answer 10

Breadth

Question 11

(long-term plans) are
plans that apply to the entire organization, establish the organization’s overall goals,
and seek to position the organization in terms of its environment.

Answer 11

Strategic plans

Question 12

(short-term plans) are plans that specify the details of how the overall goals are to be
achieved.

Answer 12

Operational plans

Question 13

Short-term versus long-term plans.

Answer 13

Time frame

Question 14

are plans that cover
one year or less.

Answer 14

Short-term plans

Question 15

are plans with a time frame beyond three years.

Answer 15

Long-term plans

Question 16

Specific versus directional plans.

Answer 16

Specificity

Question 17

are plans that are
clearly defined and leave no room for interpretation.

Answer 17

Specific plans

Question 18

are flexible plans
that set out general guidelines.

Answer 18

Directional plan

Question 19

Single-use versus standing plans.

Answer 19

Frequency of use

Question 20

is a one- time plan specifically designed to meet the needs of a unique situation.

Answer 20

Single use plans

Question 21

are ongoing plans that provide guidance for activities performed repeatedly.

Answer 21

Standing plans

Question 22

Goals can be established through the process of traditional goal setting or
through

Answer 22

MBO (Management by Objectives)

Question 23

is an approach to setting goals in which goals are set at the
top level of the organization and then broken into subgoals for each level of the
organization.

Answer 23

Traditional goal setting

Question 24

assumes that top managers know what is best because of their ability to see the “big picture.” Employees are to work to meet the goals for their particular
area of responsibility.

Answer 24

Traditional goal setting

Question 25

integrated network of goals in which the accomplishment of
goals at one level serves as the means for achieving the goals, or ends, at the next
level.

Answer 25

Means–Ends Chain

Question 26

 The integrated network of goals that results from establishing a
clearly-defined hierarchy of organizational goals.
 Achievement of lower-level goals is the means by which to reach
higher-level goals (ends).

Answer 26

Means–Ends Chain

Question 27

is a process of setting mutually agreed-upon goals
and using those goals to evaluate employee performance.

Answer 27

Management by objectives (MBO)

Question 28

 Specific performance goals are jointly determined by employees and
managers.
 Progress toward accomplishing goals is periodically reviewed.
 Rewards are allocated on the basis of progress towards the goals.

Answer 28

Management by objectives (MBO)

Question 29

Key elements of MBO:

Answer 29

 Goal specificity, participative decision making, an explicit
performance/evaluation period, feedback

Question 30

Five Steps in Goals Setting

Answer 30

1. Review the organization’s mission (the purpose of the organization).
2. Evaluate available resources.
3. Determine the goals individually or with input from others
4. Write down the goals and communicate them to all who need to know.
5. Review results and whether goals are being met. Make changes as needed.

Question 31

Characteristics of Well Designed Goals

Answer 31

• Written in terms of outcomes
• Measurable and quantifiable
• Clear as to time frame
• Challenging yet attainable
• Written down
• Communicated to all necessary organizational members

Question 32

Three Contingency Factors in Planning

Answer 32

• Manager’s level in the organization
• Degree of environmental uncertainty
• Length of future commitments

Question 33

 Strategic plans at higher levels
 Operational plans at lower levels

Answer 33

Manager’s level in the organization

Question 34

 Stable environment: specific plans
 Dynamic environment: specific but flexible plans

Answer 34

Degree of environmental uncertainty

Question 35

current plans affecting future commitments
must be sufficiently long-term to meet those commitments.

Answer 35

Commitment concept

Question 36

 A group of planning specialists who help managers write organizational
plans.
 Planning is a function of management; it should never become the sole
responsibility of planners.

Answer 36

Establishing a formal planning department

Question 37

Plans are developed by members of organizational units at various levels and then
coordinated with other units across the organization.

Answer 37

Involving organizational members in the process