Chapter 4

Question 1

tactical plans

Answer 1

plans specifying how the company will use resources, budgets, and people over the next 6 months-2 years to accomplish goals

Question 2

strategic objective

Answer 2

more specific goal that unifies company wide efforts, stretches and challenges the organization and possesses a finish line and time frame

Question 3

purpose statement

Answer 3

statement of company’s purpose or reason for existing

Question 4

strategic plans

Answer 4

overall plans clarifying how company will serve customers and position itself against competitors over the next 205 years

Question 5

top to bottom planning

Answer 5

Top managers-mission
Middle-tactical plans and management by objectives
1st- operational plans, standing plans, single use plans

Question 6

learning based planning

Answer 6

assumes action plans need to be tested, changed, improved as companies learn better ways of achieving goals

Question 7

slack resources

Answer 7

cushion of resources

ex-extra time

Question 8

options based planning

Answer 8

keep options open by making small, simultaneous investments in many alternative plans

Question 9

distal goals

Answer 9

long-term or primary goals

Question 10

proximal goals

Answer 10

short-term goals/subgoals

Question 11

SMART goals

Answer 11

S-specific
M- measurable 
A- attainable 
R- realistic
T- timely

Question 12

steps in making a plan?

Answer 12

1) set goals
2) develop commitment
3) develop effective action plan
4) track progress
5) maintain flexibility

Question 13

pitfalls of planning? (3)

Answer 13

1) impede change; slow to adapt
2) false sense of creativity
3) detachment of planners

Question 14

what does planning offer?

Answer 14

• intensified effort
• persistence
• direction
• creation of task strategies

Question 15

management by objectives (MBO)

Answer 15

4 step process where managers and employees

1) discuss possible goals
2) collectively select goals that are challenging, attainable, and consistent with the company’s overall goals
3) jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives
4) meet regularly to review progress toward accomplishment of those goals.

Question 16

operational plans

Answer 16

day to day plans, developed and implemented by lower-level managers for producing or delivering the organization’s products and services over a 30-day period to 6 months

Question 17

single use plans (operational plan)

Answer 17

plans that cover unique, one time only events

Question 18

standing plans (operational plan)

Answer 18

plans used repeatedly to handle frequently recurring events

Question 19

Policy (Standing Plan)

Answer 19

general course of action that company managers should take in response to a particular event or situation

Question 20

Procedures (standing Plan)

Answer 20

indicate the series of steps that should be taken in response to a particular event

Question 21

Rules and Regulations (standing plan)

Answer 21

describe how a particular action should be performed or what must happen or not happen in response to a particular event

Question 22

Budgeting (operational plan)

Answer 22

quantitative planning because it forces managers to decide how to allocate available money to best accomplish company goals

Question 23

decision making

Answer 23

process of choosing a solution from available alternatives

Question 24

rational decision making

Answer 24

systematic process in which managers define problems, evaluate alternatives, and choose optimal solutions that provide maximum benefits to their organizations

Question 25

steps to rational decision making

Answer 25

1) Define problem
2) identify decision criteria
3) weight the criteria
4) generate alternative courses of action
5) evaluate each alternative (most expensive)
6) compute the optimal decision

Question 26

problem

Answer 26

when there is a gap between a desired state (what is wanted) and an existing state.

Question 27

decision criteria

Answer 27

standards used to guide judgements and decisions

Question 28

absolute comparisons

Answer 28

where each criteria is compared with a standard or ranked on its own merits

Question 29

relative comparisons

Answer 29

where each criteria is compared directly with every other criteria

Question 30

bounded rationality

Answer 30

managers try to take a rational approach to decision making but are restricted by real-world constraints, incomplete and imperfect information, and their own limited decision making capabilities

Question 31

maximizing decisions

Answer 31

choosing the optimal solution aka best alternative

Question 32

sacrificing

Answer 32

“good-enough” alternative

Question 33

Why are groups better at making decisions?

Answer 33

1) multiple perspectives
2) find and access more information
3) increased knowledge and information available to groups make it easier for them to generate more alternative solutions
4) members are more committed to making the solution work

Question 34

groupthink

Answer 34

occurs in highly cohesive groups when members feel intense pressure to agree with each other so that the group can approve a proposed solution (GM recall, Lehman Brothers)

Question 35

c-type conflict/cognitive conflict

Answer 35

disagreement that focuses on problem and issue-related differences of opinion; different experiences lead them to view problem/solution differently. best possible solution

Question 36

a-type conflict/affective conflict

Answer 36

refers to emotional reactions that can occur when disagreements become personal rather than professional. End in hostility, anger, etc

Question 37

devil’s advocacy

Answer 37

role of a critic; 5 steps

1) Generate a potential solution
2) assign a devil’s advocate to criticize and question solution
3) present the critique of the potential solution to key decision makers
4) father additional relevant information
5) decide whether to use, change, or not use the originally proposed solution

Question 38

dialectical inquiry

Answer 38

decision making method in which decision makers state the assumptions of a proposed solution (a thesis) and generate a solution that is the opposite (antithesis) of that solution

1) Generate a potential solution.
2) Identify the assumptions underlying the potential solution.
3) Generate a conflicting counterproposal based on the opposite assumptions.
4) Have advocates of each position present their arguments and engage in a debate in front of key decision makers.
5) Decide whether to use, change, or not use the originally proposed solution.

Question 39

nominal group technique

Answer 39

quiet time in which group members independently write down as many problem definitions and alternative solutions as possible; decreases type a conflict

Question 40

Delphi technique

Answer 40

members of a panel of experts respond to questions and to each other until reaching agreement on an issue. more likely to participate, but time consuming

Question 41

stepladder technique

Answer 41

a decision-making method in which group members are added to a group discussion one at a time (like a stepladder). the existing group members listen to each new member’s thoughts, ideas, and recommendations; then the group shares the ideas and suggestions that it had already considered, discusses the new and old ideas, and makes a decision; cannot rush

Question 42

brainstorming

Answer 42

where group members build on others’ ideas; 4 rules

1) more ideas the better
2) all ideas are acceptable
3) other group members ideas should be built upon
4) criticism or evaluation of ideas is not allowed

Question 43

electronic brainstorming

Answer 43

group members use computers to communicate and generate alternative solutions, overcoming the disadvantages

Question 44

production blocking (disadvantage brainstorming)

Answer 44

occurs when you have an idea but have to wait to share because someone else is already presenting an idea to the group

Question 45

evaluation apprehension (disadvantage brainstorming)

Answer 45

being afraid of what others will think of your ideas