Chapter 8

Question 1

Planning

Answer 1

The process of setting objectives and determining how to accomplish them

Question 2

Steps in the Planning Process

Answer 2

1) Define your objectives
2) Determine where you stand vis-à-vis objectives
3) Develop premises regarding future conditions
4) Analyze alternatives and make a plan
5) Implement the plan and evaluate results

Question 3

Two Main Types of Plans

Answer 3

1) Long Term Plans

2) Short Term Plans

Question 4

Long Term Plans

Answer 4

Look three or more years into the future

Question 5

Short Term Plans

Answer 5

Typically cover one year or more

Question 6

Strategic Plans

Answer 6

Identifies long-term directions for the organization

Question 7

Vision

Answer 7

Clarifies purpose of the organization and what it hopes to be in the future

Question 8

Tactical Plan

Answer 8

Helps to implement all or part of the strategic plan

Question 9

Functional Plan

Answer 9

Indicate how different operations within the organization will help advance the overall strategy

Question 10

Operational Plan

Answer 10

Identifies short term activities to implement strategic plans

Question 11

Forecasting

Answer 11

Attempts to predict the future

Question 12

Two Types of Forecasting

Answer 12

1) Qualitative Forecasting

2) Quantitative Forecasting

Question 13

Qualitative Forecasting

Answer 13

Uses expert opinions to predict the future

Question 14

Quantitative Forecasting

Answer 14

Uses mathematical models and statistical analyses of historical data and surveys to predict future events

Question 15

Contingency Planning

Answer 15

Identifies alternative courses of action to take when things go wrong

Question 16

Benchmarking

Answer 16

Use of external and internal comparisons to plan for the future improvements

Question 17

Participatory Planning

Answer 17

Includes the persons who will be affected by plans and/or those who will implement them