Chapter 5

Question 1

What is planning?

Answer 1

setting goals and deciding how to achieve them and coping with uncertainty by formulating future courses of action to achieve specified results

Question 2

What is a plan?

Answer 2

a document that outlines how goals are going to be met

Question 3

What is a SMART goal?

Answer 3

specific, measurable, attainable, realistic/results-oriented, timely

Question 4

What is strategy or strategic plan?

Answer 4

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

Question 5

What is strategic management?

Answer 5

a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

Question 6

What are planning and strategic management important?

Answer 6

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

Question 7

What is a QBR?

Answer 7

quarterly business review

Question 8

What is the first step in strategic management?

Answer 8

establish the mission, vision, and values

Question 9

What is the second step in strategic management?

Answer 9

assess the current reality

Question 10

What is the third step in strategic management?

Answer 10

formulate the grand strategy and strategic, tactical, and operational plans

Question 11

What is the fourth step in strategic management?

Answer 11

implement the strategy

Question 12

What is the fifth step in strategic management?

Answer 12

maintain strategic control

Question 13

What is strategy innovation?

Answer 13

the ability to reinvent the basis of competition within existing industries

Question 14

What is a mission statement?

Answer 14

expresses the purpose of the organization

Question 15

What is a vision statement?

Answer 15

gives a clear sense of the future and the actions needed to get there

Question 16

What is a value statement?

Answer 16

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

Question 17

Who does strategic planning?

Answer 17

top management

Question 18

Who does tactical planning?

Answer 18

functional managers, product-line managers, etc.

Question 19

Who does operational planning?

Answer 19

unit managers, team leaders, first-line supervisors

Question 20

How far in the future is strategic planning focused on?

Answer 20

1-5 years

Question 21

How far in the future is tactical planning focused on?

Answer 21

6-24 months

Question 22

How far in the future is operational planning focused on?

Answer 22

1-52 weeks

Question 23

What is a goal?

Answer 23

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

Question 24

What are short term goals?

Answer 24

tactical or operational goals; generally span 12 months and connected to strategic goals in a hierarchy known as a means-end chain

Question 25

What are long term goals?

Answer 25

strategic goals; span 1-5 yrs and focus on achieving the strategies identified in a company’s strategic plan

Question 26

What is an operating plan?

Answer 26

• a plan that breaks long-term output into short-term targets or goals
• turns strategic plans into actionable short-term goals

Question 27

What is an action plan?

Answer 27

defines the course of action (the tactics) needed to achieve a goal; contains a projected date for completing the activites

Question 28

What are standing plans?

Answer 28

plans developed for activities that occur repeatedly over a period of time

Question 29

What is a policy?

Answer 29

outlines general response to a designated problem or situation

Question 30

What is a procedure?

Answer 30

outlines response to particular problems or circumstances

Question 31

What is a rule?

Answer 31

designates specific required action

Question 32

What is a single-use plan?

Answer 32

for activities not likely to be repeated in the future

Question 33

What is a program?

Answer 33

encompasses a range of projects or activities

Question 34

What is a project?

Answer 34

has less scope and complexity than a program

Question 35

What is the first step in management by objectives?

Answer 35

managers AND employees jointly set objectives for the employee

Question 36

What is the second step in management by objectives?

Answer 36

managers develop action plans

Question 37

What is the third step in management by objectives?

Answer 37

managers AND employees periodically review the employee’s performance

Question 38

What is the fourth step in management by objectives?

Answer 38

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

Question 39

What are performance objectives?

Answer 39

express the objective as an outcome or end-result

Question 40

What are behavioral objectives?

Answer 40

express the objective as the behaviors needed to achieve an outcome

Question 41

What are learning objectives?

Answer 41

express the objective in terms of acquiring knowledge or competencies

Question 42

What has to happen for MBO goal-setting to be successful?

Answer 42

• top management must be committed to it
• goals must be applied organization-wide
• goals must “cascade” (be linked consistently down through the organization

Question 43

What are the two planning steps of the planning/control cycle?

Answer 43

1. make the plan

2. carry out the plan

Question 44

What are the two control steps in the planning/control cycle?

Answer 44

3. control the direction by comparing the results with the plan
4. control the direction in 2 ways: (a) by correcting deviations in the plan being carried out or (b) by improving future plans