Chapter 6: Reaching goals, plans and controls

Question 1

Planning

Answer 1

Management function of setting goals and determining how to meet them

Question 2

Objectives

Answer 2

Specific desired accomplishments of an organization

Question 3

Goals

Answer 3

Objectives with a broad focus. Identify what people should be striving towards

Question 4

Strategic planning

Answer 4

Creation of long term goals for the organization. Usually higher level management

Question 5

Operational planning

Answer 5

Specifying how the group will help the organization achieve directives. Generally middle managers.

Question 6

5 Characteristics of specific objectives

Answer 6

1. Written
2. Measurable
3. Clear
4. Specific
5. Challenging but achievable

Question 7

Policies

Answer 7

Broad guidelines for how to act. No details to handle situation.

Question 8

Procedures

Answer 8

Specific steps that must be completed to achieve a specific purpose.

Question 9

Rules

Answer 9

Specific statements of what to do/not do in specific situations. Neither flexible nor up for interpretation

Question 10

Action plans

Answer 10

Plan for how to achieve an objective

Question 11

Contingency plan

Answer 11

Planning for what to do if the initial plan doesn’t work

Question 12

Management by objectives

Answer 12

Formal system for planning in which managers and employees at all levels set objectives for what they are to accomplish and their performance is measured on those objectives

Question 13

3 steps of management by objectives

Answer 13

1. Individuals work with supervisors to set objectives specifying what they are to do within the next operating period
2. Periodically review each individuals performance to see if they’re meeting objectives 2-4x/ year. Adjust as needed
3. Organization rewards individuals on basis of how close they come to fulfilling objectives

Question 14

Operating budget

Answer 14

wages, salaries, rent, supplies, insurance

Question 15

Capital budget

Answer 15

Accounting for big ticket items

Question 16

Gantt Chart

Answer 16

Lists activities to be completed and uses horizontal bars to graph how long each activity will take

Question 17

PERT technique

Answer 17

Program evaluation and review technique

Identifies relationships among tasks as well as the amount of time each task will take

Question 18

PERT critical path

Answer 18

sequence of tasks that will require the greatest amount of time. Delaying these tasks generally delay entire projects.

Question 19

Controlling

Answer 19

Management function that ensures work goes according to plan. Monitoring performance is the core of controlling.

Question 20

Variance

Answer 20

Difference between performance and standards to be met.

Question 21

Exception principle

Answer 21

Deciding how much variance in performance to standards is acceptable before intervention is necessary and meaningful

Question 22

Problem

Answer 22

Factor in an organization that is a barrier to improvement

Question 23

Symptom

Answer 23

Indication of an underlying problem

Question 24

Positive reinforcement

Answer 24

Introduction of something positive to encourage good behavior

Question 25

Negative reinforcement

Answer 25

Removal of something negative to encourage good performance

Question 26

3 ways to fix a problem

Answer 26

1. Adjust process
2. Improve behavior
3. Adapt standards

Question 27

3 types of control

Answer 27

1. Feedback control
2. concurrent control
3. pre-control

Question 28

Feedback control

Answer 28

Reacting to feedback from past performance

Question 29

Concurrent control

Answer 29

control while work takes place

Question 30

Pre-control

Answer 30

Prevent behavior that may lead to undesirable results

Question 31

4 Characteristics of effective controls

Answer 31

1. Timeliness
2. Cost effective
3. Acceptability
4. Flexibility