MIDTERM Flashcards
typically any diagram or list of steps with details of timing and
resources, used to achieve an objective to do something.
Plan
It is commonly
understood as a temporal set of intended actions through which one
expects to achieve a goal.
PLAN
is a specific result to be achieved, the end result of a plan, critically
appraising the present position of an organization, setting objectives.
GOALS
is a specific result toward which effort is directed, and
determining the course of action to follow and achieve objectives set are
themselves positive forces toward good management.
OBJECTIVES
definitely significant as it directs us where to go, it furnishes
direction and decreases the danger of risk by making predictions.
PLANNING
WHAT ARE THE 6 IMPORTANCES OF PLANNING?
- Planning provides directions.
- Planning decreases the chances of risk.
- Planning decreases overlapping and wasteful activities.
- Planning encourages innovative ideas.
- Planning aids decision making.
- Planning sets standards for controlling.
By stating in advance how work is to be done, planning provides
direction for action.
PLANNING PROVIDES DIRECTIONS
Planning guarantees that goals and aim are distinctly defined so that
they operate as a pattern for determining what direction should be
taken.
PLANNING PROVIDES DIRECTIONS
Planning makes the goals and objectives clear in the minds of all
individuals working in different capacities.
Ø Lack of planning brings chaos and lack of coordination.
PLANNING PROVIDES DIRECTIONS
Planning is done for the future and the future is full of
uncertainties.
PLANNING DECREASES THE CHANCES OF RISK
Planning enables a manager to look forward and take
appropriate steps to deal with future uncertainties and
changes.
PLANNING DECREASES THE CHANCES OF RISK
Mis-happenings and uncertain events cannot be eliminated
completely but their effect on the organization can be
minimized if we plan how to overcome such situations.
PLANNING DECREASES THE CHANCES OF RISK
Through planning, the efforts of various individuals and
departments are coordinated properly to eliminate
overlapping & wasteful activities.
PLANNING DECREASES OVERLAPPING AND WASTEFUL ACTIVITIES
It ensures clarity in thoughts and actions, work is carried on
smoothly without any confusion and misunderstanding.
PLANNING DECREASES OVERLAPPING AND WASTEFUL ACTIVITIES
Useless and wasteful activities are reduced or eliminated.
Ø It is easier to detect inefficiencies and take corrective
measures to deal with them.
PLANNING DECREASES OVERLAPPING AND WASTEFUL ACTIVITIES
New ideas can take the shape of concrete plans and innovation.
Ø Innovation is required to modify the plans for the growth
and expansion of the business.
PLANNING ENCOURAGES INNOVATIVE IDEAS
Through planning, managers compare different alternatives
with their benefits and limitations.
Ø Planning helps make rational decisions by choosing the best
most profitable alternative which may bring lower cost,
adaptable to the organisation and situations.
PLANNING AIDS DECISION MAKING
Planning provides standards against which actual performance is
measured. Without standards, the actual performance of each
individual, department, and division cannot be measured.
PLANNING SETS STANDARDS FOR CONTROLLING
WHAT ARE THE 7 PLANNING PROCESS?
- Identification of Opportunities and Threats.
- Evaluation of Present Situation.
- Setting Goals and Objectives.
- Determining Planning Premises.
- Evaluating Alternatives.
- Programming.
- Budget Preparation.
This activity involves collecting and analyzing relevant
external information which define opportunities or
threats to the firms business. The analysis of threats to
the survival of a firm is as important as the evaluation
of opportunities.
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Having assessed the opportunities available to the firm as well
as the threats that challenge its existing business, the next step
is to evaluate the company’s present situation in order to
determine the gap between the desired level of performance
and its present levels of performance.
For example, this gap could be the difference between the
present momentum revenue level using current level of
resources and the potential revenue level with the expansion of
facilities.
EVALUATION OF PRESENT SITUATION
The formulation of company objectives may be done in
different ways. Some firms formulate objectives in three
stages.
The first stage is the statement of purpose or the reason for
being for the organization.
The second stage is the statement of scope activities it will
undertake to achieve the purpose.
And lastly, the statement of objectives, clarifies the level of
performance to be achieved in these activities.
SETTINGS GOALS AND OBJECTIVES
Planning premise are assumptions about the future,
which form an important basis for the strategic choices
as well as the detailed plans of a firm. The premises which underlie business planning usually
concern external and internal variables which are
expected to have a major impact on the firms future
performance.
DETERMINING PLANNING PREMISES
The identification of opportunities and threats in the first
stage of planning process assesses the external factors, while
the evaluation of present situation considers internal factors.
The consideration of both external and internal factors
relates the firms internal capabilities and resources.
EVALUATING ALTERNATIVES
Programming translates broad plans to specific activities to be
undertaken by an enterprise that extends over a period of
several years. Programs are usually structured by product
lines or by industry or market classification.
PROGRAMMING
Budgeting is the translation of programs to financial and
other quantitative data. The budget is stated in monetary
terms after supplemented by nonmonetary amounts like
units sold or produced.
BUDGET PREPARATION
one which the process, participants, outputs,
formats and calendar of the planning activities are explicitly
defined.
FORMAL PLANNING SYSTEM
WHAT ARE THE 4 General Approaches to Formal Planning
Bottom-up Approach, Top-down Approach, Interactive Approach, Dual Approach
Formulation of plan is initiated by various units or divisions of an
organization and then passed upward for aggregation at the
corporate level.
BOTTOM-UP APPROACH
Initiative is taken by the upper levels executives of the organization,
who formulates a unified, coordinated plan, usually with the advice
of lower level manager.
TOP-DOWN APPROACH
In this approach, a compromise between the bottom-up and the
top-down methods, corporate executives and lower level
managers develop plan in consultation with each other, making a
link between wider corporate objectives and the managers
detailed knowledge of specific situation.
INTERACTIVE APROACH
Plan is independently formulated both at the corporate and
business levels. All units form plants to suit their particular
situation and these plans are regularly viewed by corporate
management.
DUAL APPROACH
the process of defining and grouping activities, and
establishing authority relationships among them to attain
organizational objectives.
ORGANIZING
Organizing translates plans into reality by decisive deployment of
resources inside a decision-making structure known as the?
ORGANIZATIONAL STRUCTURE
is the transfer of authority and/or
responsibility to others, often lower in position.
DELEGATION
can improve flexibility to meet customers
needs and adapt to competitive environments.
DELEGATION
3 Elements of Delegation
Ø Authority
Ø Responsibility
Ø Accountability
a manager’s formal and legitimate right to make
decisions, issue orders, and allocate resources to achieve
organizationally desired outcomes.
A person with authority has the power to give orders, make
decisions, and enforce obedience.
AUTHORITY
means an employee’s duty to perform assigned
task or activities.
A person with a responsibility is someone who is being held
accountable or to blame for something.
RESPONSIBILITY
means that those with authority and
responsibility must report and justify task outcomes to those
above them in the chain of command.
Someone with accountability has an obligation to accept
responsibility for one’s action, and is to blame for any mishaps.
ACCOUNTABILITY
3 Possible reasons for delegation:
Efficiency, Specialization, Training
amount of time to complete a task can be
considerably reduce with multiple people working on it
compared to one.
EFFICIENCY
allows people with the most qualifications and
knowledge to complete a specific and more complex task.
SPECIALIZATION
assigning a task to a trainee or new members so they
can gain first-hand knowledge and experience.
TRAINING
What are the Three stages
The first stage is the statement of purpose or the reason for
being for the organization.
The second stage is the statement of scope activities it will
undertake to achieve the purpose.
And lastly, the statement of objectives, clarifies the level of
performance to be achieved in these activities.
