CH 5: Understanding Planning

Question 1

the first of 4 functions in the management process

Answer 1

planning

Question 2

what two things does planning involve

Answer 2

-setting goals and deciding how to achieve them

-ensuring the plans are linked to business strategy

Question 3

3 definitions of planning

Answer 3

Planning is defined as setting goals and deciding how to achieve them

coping with uncertainty by formulating future courses of action to achieve specified results

A plan is a document that outlines how goals are going to be met.

Question 4

what is a plan

Answer 4

a document that outlines how goals are going to be met.

Question 5

2 example models of planning

Answer 5

business plan
business model

Question 6

Business plan

Answer 6

doc outlines firm’s goals, the strategy for achieving them,
and the standards for measuring
success.

Question 7

Business model

Answer 7

Outlines the need
the firm will fill, the operations of
the business, its components and
functions, as well as the expected
revenues and expenses

Question 8

what is a strategy/strategic plan

Answer 8

-A large-scale action plan that sets the long-term goals and direction
for an org

Question 9

a strategy represents an

Answer 9

educated guess abt what must be done in the long term for the survival/prosperity of the org or its principle parts

Question 10

when are strateguc plans reconsidered

Answer 10

every year due to everchanging business conditions

Question 11

Strategic management

Answer 11

Process that involves managers from all parts of the org in the formulation/implementation of strategies and strategic goals

From top management to middle to first line

Question 12

what is strategic management dervien from

Answer 12

orgs mission and vision

Question 13

Why are planning and strategic management important

Answer 13

Provide direction & momentum

Encourage new ideas

Develop a sustainable competitive advantage

Question 14

Mission statement

Answer 14

Express the purpose of the org
What is our reason for being
Why are we here

Question 15

vision statemetnt

Answer 15

A clear sense of the future and the actions needed to get there

What do we want to become

Where do we want to go

Question 15

value statement

Answer 15

What the company stands for: its core priorities, the values its employees
embody, and what its products contribute to the world

What values do we want to emphasize?

Question 16

strategic planning managers

Answer 16

done by top managers for the next 1-5 years

Question 17

tactical planning

Answer 17

done by middle managers for the next 6-24 months

Question 18

operational planning managers

Answer 18

done by first line managers for the next 1-52 weeks

Question 19

PLANNING and STRATEGIC MANAGEMENT steps

Answer 19

1-establish the mission and vision and values
2- assess the current reality
3- formulate the grand strategy & strategic, tactical, and operational plans
4- implement the strategy
5- maintain strategic control

Question 20

top management positions

Answer 20

CEO, president, VP, GM, Division heads

Question 21

middle management

Answer 21

functional managers, product line managers, department managers

Question 22

first line managers

Answer 22

unit managers, team leaders, first line supervisors

Question 23

top management planning

Answer 23

make LT decisions abt direction of the org.

need to pay attention to the env outside the org, be future oriented, deal with uncertain and competitive conditions

Question 24

middle management planning role

Answer 24

implement policies/plans of top management and supervise and coordinate activities of first line managers

make decisions without base of clearly defined info procedures

Question 25

first line managers planning roles

Answer 25

direct daily tasks of non managerial personel

decisions often predictable following well defined set of routine procedures

Question 26

operating plan

Answer 26

Breaks long term output input short term targets or goals

Turns strategic plans into actionable short term goals and action plans

Question 27

action plan

Answer 27

Defines the course of action( the tactics) needed to achieve stated goal

Contains a projected date for completing the desired activities for each tactic

Question 28

Standing plan

Answer 28

For activities that occur repeatedly over a period of time

Question 29

policy

Answer 29

Outlines general response to a designated problem or situation

Question 30

Procedure

Answer 30

Outlines response to particular problems or circumstances

Question 31

Rule

Answer 31

-Designates specific required action

Question 32

Single-use Plan-

Answer 32

For activities not likely to be repeated in the future

Question 33

Program

Answer 33

Encompasses a range of projects or activities

Question 34

Project

Answer 34

Has less scope and complexity than a program

Question 35

goals definition

Answer 35

specific commitment to achieve a measurable result within a stated period of time

Question 36

short term goals

Answer 36

Sometimes referred to as tactical, operational, or plan goals

Generally span 12 months and connected to strategic goals in a hierarchy known as means end chain

Question 37

long term goals

Answer 37

Referred to strategic goals

Tend to span 1-5 years and focus on achieving the strategies identified in the companies strategic pl

Question 38

smart goals list

Answer 38

specific
measureable
attainable
results oriented
target dates

Question 39

specific

Answer 39

goals should be stated in specific rather than vague terms

Question 40

measurable

Answer 40

whenever possible, goals should be measurable or quantifiable

Question 41

Attainable

Answer 41

goals should be challenging but realistic and attainable

Question 42

Results-oriented

Answer 42

Only a few goals should be chosen and should be results-oriented

Question 43

target dates

Answer 43

Goals should specify the target dates or deadline dates when they are to be obtained

Question 44

4 step to motivating employees

Answer 44

1- managers and employee jointly set objectives for the employees

2- managers develop action plans

3-managers and employees periodically review the employees performance

4- managers make a performance appraisal and reward the employee according to results

Question 45

3 types of objectives used in MBO

Answer 45

performance, behavioral, learning

Question 46

Performance objective

Answer 46

Express the objective as an outcome or end-result

Ex: reduce food wastage by 15%

Question 47

behavioral objective

Answer 47

Express the objective as the behaviors needed to achieve an outcome

Ex: greet all potential automobile customers with a smile and offer to help

Question 48

Learning objectives

Answer 48

Express the objective in terms of acquiring
knowledge or competencies

Ex: learn the ingredients in the dishes

Question 49

For MBO goals setting 3 things need to happen

Answer 49

Top management must be committed to it.

Goals must be applied organization wide

Goals must “cascade”—be linked consistently down through the organization.

Question 50

the planning cycle

Answer 50

1-make the plan
2- carry out the plan

Question 51

control cycle steps

Answer 51

3-control the direction by comparing w results

4-control direction in 2 ways
-correction deviations in the plan
-by improving future plans

Question 52

Strategic planning is done by ______ managers.

Answer 52

top

Question 52

It is the function of the ______ to take the strategic plan and develop actionable short-term goals that a business can achieve.

Answer 52

operating plan

Question 53

The process of ensuring that the strategic goals set at the top align with more specific short-term goals at lower organizational levels is known as ______ goals.

Answer 53

cascading