chapter 5

Question 1

planning

Answer 1

Setting goals and deciding how to achieve them

Question 2

business plan

Answer 2

outlines firm’s
- goals
- strategy for achieving them,
- standards for measuring success

firms strategic plans
firms operating plans

Question 3

plan

Answer 3

document that outlines how goals are going to be met

Question 4

strategic planning

Answer 4

done by top managers

make long term decisions about overall direction of org
- know outside env and be future oriented while dealing with uncertainty and competition

Question 5

tactical planning

Answer 5

done by middle managers

• implement policies and plans of top management
• supervise and coordinate activities of first-line managers.
• make decisions w/o defined info procedures

HOW WE WILL DO THE WHAT

Question 6

operational planning

Answer 6

done by first-line managers

• direct daily tasks of nonmanagerial personnel. Follow a day to day routine

HOW WE WILL DO THE HOW TO THE WHAT

Question 7

strategic management

Answer 7

managers from all parts of org form and implement strategies and strategic goals
1. est mission, vision, and values
2. assess the current reality
3. formulate the grand stategy and strategic, tactical, and operational plans
4. implement the strategy
5. maintain strategic control

WHAT WE WILL DO

Question 8

purpose of planning

Answer 8

• provide direction and momentum
• encourage new ideas
• develop a sustainable comp advantage

Question 9

fundamentals of planning

Answer 9

mission (reason for being) –> vision(what want to become) –> values(values to emphasize)

Question 10

goals

Answer 10

commitment to achieve a measureable result within a stated period of time

Question 11

short term goals

Answer 11

aka tactical or operational goals or plain goals

connected to strategic goals in a hierarchy known as means-end-chain

Question 12

long-term goals

Answer 12

aka strategic goals
focus on achieving the strategies identified in a companys strategic plan

Question 13

strategic goal

Answer 13

set by top managerment and focus on objectives for the org as a whole

Question 14

tactical goal

Answer 14

set by middle managers

focus on the action needed to achive strategic goals

Question 15

operational goals

Answer 15

set by ad for first line managers and are concerned with short term matters associated with completing tactical goals

Question 16

operating plan

Answer 16

breaks long term output into short term targets or goals

turns strategic plans into actionable short term goals and action plans

Question 17

action plan

Answer 17

course of action (tactics) needed to achieve a stated goal

contains a project date for completing the desired activities for each tactic
latter for the operating plan

Question 18

SMART goals

Answer 18

1. specific – clear
2. measurable – quantified output
3. attainable – accomplishable
4. results oriented – sup org vision
5. target dates

Question 19

MBO

Answer 19

Management by Objectives

measures employees’ performance against a series of set targets or goals agreed by management and employees to improve perf of org

1. unity of management action = pursuit of a common objective and increased communication
2. greater focus on results on a time scale = greater likelihood of achieving them
3. greater participation in setting meaningful work w/ accountable results = greater motivation in completing it
4. employees taking pride in work and thus boosting output and loyalty to org

disadvantage :
1. goal and target focused, ignores culture
2. time constraints and pressure to meet goals
3.meet target goals by any mean necessar –> shortcuts

Question 20

planning/control cycle

Answer 20

1. make the plan
2. carry out the plan
3. control the direction by comparing results with the plan
4. control direction by a. correcting divergences in the plan being carried out b. improve future plans

Question 21

MBO process

Answer 21

1) managers and employees jointly set objectives for the employee,
(2) managers develop action plans,
(3) managers and employees periodically review performance
- adjustment/feedback
(4) the manager makes a performance appraisal and rewards the employee according to results
- reward attainment of objectives/ correct action for non attained