chapter 8

Question 1

Goals? and maybe be what two things?

Answer 1

are desired outcomes or targets.

- strategic or financial and might be stated or real

Question 2

plans

Answer 2

are documents that outline how goals are going to be met.

Question 3

stated goals

Answer 3

official statements of what van organization says, and what it wants its stakeholders to believe, it’s goals are

Question 4

real goals

Answer 4

those goals an organization actually pursues- observe what organizational members are doing.

Question 5

strategic plans

Answer 5

are plans that apply to the entire organization’s overall goals.

Question 6

operational plan

Answer 6

plans that encompass a particular operational area of the organization.

Question 7

long term plans

Answer 7

those with a time frame beyond three years.

Question 8

short-term plans

Answer 8

cover one year or less.

Question 9

specific plans

Answer 9

are clearly defined and leave no room for interpretation.

Question 10

directional plans

Answer 10

are flexible plans that set out general guidelines.

Question 11

single use plan

Answer 11

is a one-time plan specifically designed to meet the needs of a unique situation.

Question 12

standing plans

Answer 12

are ongoing plans that provide guidance for activities performed repeatedly.

Question 13

traditional goal setting

Answer 13

goals set by top managers flow down through the organization and become sub-goals for each organizational area.

Question 14

mean-ends chain

Answer 14

higher level goals are linked to lower level goals, which serve as the accomplishment.

Question 15

management by objectives

Answer 15

a process of setting mutually agreed upon goals and using those goals to evaluate employee performance.

Question 16

mission

Answer 16

a broad statement of an organizations purpose that provides an overall guide to what organizational members think is important.

Question 17

stretch goals

Answer 17

seemingly impossible goals, play in an organization planning approach

Question 18

commitment concept

Answer 18

that plans should extend far enough to meet those commitments made when the plans were developed

Question 19

formal planning department

Answer 19

a group of planning specialists whose sole responsibility is to help write he various organizational plans.

Question 20

environmental scanning

Answer 20

screening information to detect emerging trends

Question 21

competitor intelligence

Answer 21

gathering information about competitors that allows managers to anticipate competitors actions rather then merely to react to them.

Question 22

planning invokes what 3 things?

Answer 22

1. defining the organizations goals
2. establishing an overall strategy
3. developing plans for organizational work activities

Question 23

what do the 4 purposes of planning include?

Answer 23

1. providing direction
2. reducing uncertainty
3. minimizing waste and redundancy
4. establishing the goals or standards used in controlling

Question 24

formal planning?

Answer 24

associated with positive financial performance bc its better to do a good job of planning and implementing the plans than just doing more planning without seeing how it would work and then make the necessary adjustments

Question 25

external environment is usually the reason why companies that plan…..?

Answer 25

don’t achieve high levels of performance

Question 26

planning-performance relationship seems to be influenced by?

Answer 26

the planning time frame

Question 27

in traditional goal setting?

Answer 27

goals are set at the top of the organization and then become subgoals for each organizational area

Question 28

Management by objectives? (MBO)

Answer 28

process of setting mutually agreed-upon goals and using those goals to evaluate employee performance

Question 29

well written goals have 6 characteristics…?

Answer 29

1. clearly defined outcomes
2. measurable and quantifiable results
3. clear as to time frame they should be accomplished by
4. challenging but attainable
5. written down
6. communicated clearly to all organizational members who should know them

Question 30

goal setting invokes these 5 steps?

Answer 30

1. review the organizations mission
2. evaluate available resources
3. determine the goals individually of with the help from others input
4. write down the goals and communicate them to all parties that should know them
5. review results and change goals as needed

Question 31

contingency factors that affect planning include the managers…? 3 things

Answer 31

1. level in organization
2. degree of environmental uncertainty
3. the length of future commitments

Question 32

two main approaches to planning include …?

Answer 32

1. traditional approach

2. other approach

Question 33

what is the traditional approach to planning?

Answer 33

when plans are developed by top managers and flow down through other organizational levels and which may use a formal planning department

Question 34

one contemporary issue in planning is what? and what does that mean?

Answer 34

planning in dynamic environments

def: developing plans that are specific but flexible

Question 35

lower organizational levels should be allowed to set goals and develop plans because?

Answer 35

there is little time in a dynamic environment for goals and plans to flow down

Question 36

another contemporary planning issue involving environmental scanning is that?

Answer 36

environmental scanning is need to help do a better analysis of the external environment

Question 37

one form of environmental scanning and what is it?

Answer 37

competitive intelligence: can be especially helpful in finding out what competitors are doing

Question 38

what is other approach of planning besides traditional approach?

Answer 38

involving more organizational members in the planning process

Question 39

what is OKR?

Answer 39

objective an key results

Question 40

what is the o in OKR

Answer 40

objective: what is to be achieved

Question 41

what is the KR in OKR

Answer 41

benchmark and monitor how we get the objective

Question 42

what composes the financial statements?

Answer 42

1. balance sheet
2. income statement
3. statement of cash flows

Question 43

what is the balance sheet?

Answer 43

snapshot of the firm

• what does a firm own: assets
• what do a firm owe: liabilities

Question 44

assets-liabilties = ?

Answer 44

equity (or net worth)

Question 45

income statement? P&L

Answer 45

aka profit and loss statement

Question 46

statement of cash flows?

Answer 46

cash received and cash spent by the firm over a period of time

Question 47

burn rate?

Answer 47

rate at which a company uses up its cash to finance operations