Final Exam

Question 1

What is planning?

Answer 1

• Process of setting objectives and determining how to accomplish them
• Provides guiding direction for other management functions of organising, leading and controlling

Question 2

What are the stages of the management process?

Answer 2

Planning
Organising
Leading
Controlling

Question 3

What can be said about the objectives in the planning stage of management?

Answer 3

Objectives are specific results usually expressed in measurable indices that someone wishes to achieve and may related to the individual, a group or organisation

Question 4

What is critical to good planning?

Answer 4

Setting the right objective

Question 5

What should planning identify with regards to future conditions?

Answer 5

Identify information based on future conditions and guide necessary decisions to allow the organisation to fully exploit and opportunities

Question 6

What is scenario planning?

Answer 6

Identifies alternative future scenarios and makes plans to deal with each

Question 7

When is scenario planning useful?

Answer 7

In fast changing and unpredictable environments, it is often necessary to have multiple scenarios for planning purposes

Question 8

What is scenario planning used for with general managers?

Answer 8

Used to get general manages at all levels better prepared for the ‘shocks’ of the industry such as new technology, terrorist events, wars etc

Question 9

When used properly, what can scenario planning do?

Answer 9

When used properly it produces a solid base from which managerial actions can proceed, including organising, leading and controlling.

Question 10

What are the basic steps in planning?

Answer 10

1. Define your objectives
2. Determine where you stand in relation to your objective
3. Develop premises regarding future conditions
4. Analyse and choose among action alternatives
5. Implement plan

Question 11

What is the SMART model?

Answer 11

Approach to determining effective organisational objectives that requires that they be specific, measureable, actionable, reasonable and timetabled.

Question 12

What is the S for in SMART model?

Answer 12

• Specific
  o Objectives need to be clearly defined so that it is easy to understand what is to be achieved and what will be considered

Question 13

What is the M for in SMART model?

Answer 13

• Measurable

o The exact measure must be stated and the objective must be able to be measured through some means

Question 14

What is the A for in SMART model?

Answer 14

• Actionable
  o Organisation needs to ensure that its business unit managers have the authority and resources to take the actions necessary to attempt to achieve the objectives that are set

Question 15

What is the R for in SMART model?

Answer 15

• Reasonable

o Unreasonable objectives are a disincentive for both managers and employees

Question 16

What is the T for in SMART model?

Answer 16

• Timetabled

o Objectives should have milestone dates or deadlines at which progress towards achieving them should be measured

Question 17

What are the three general types of plans?

Answer 17

Short range
Intermediate range
Long range

Question 18

What are short range plans?

Answer 18

• Short range plans
  o Generally cover one year or less
  o Lower management

Question 19

What are intermediate plans?

Answer 19

• Intermediate range plans
  o Generally cover one to two years
  o Lower management

Question 20

What are long range plans?

Answer 20

• Long range plans
  o Generally 3 years or more
  o Top management

Question 21

What relationship does short rang and intermediate plans have to the long range plan?

Answer 21

Short range and intermediate range plans serve to fulfil the overall long term plan

Question 22

What could happen without a long range plan?

Answer 22

In the absence of long term plan employees may see themselves working hard but without achieving sustainable and clear long term result