Planning Flashcards
What is planning?
Planning is the process of setting objectives, formulating strategies, and developing plans for achieving them.
What is monitoring?
Monitoring is the continuous review and evaluation of the organization’s operations to ensure that they align with the organization’s objectives and goals.
What is controlling?
Controlling is the implementation of measures that ensure that the organization’s operations are carried out in accordance with the set plans and objectives.
What category of accounting does planning come under?
Internal or management accounting.
What are the five points of the planning stage that managers must complete to assist them in achieving organisational objectives?
- Identifying the problem.
- Collecting the relevant information.
- Determining alternative courses of action .
- Evaluating the alternatives.
- Making a decision.
What is single-loop learning?
Where organises plan and only adjust the plan at a minimal level.
What is double-loop learning?
Where the company regularly assesses the circumstances so they can alter and adapt to any changes.
What does long-term planning relate to?
Long-term planning relates to strategic planning and is linked to organisational values, mission, goals and objectives. Strategic planning includes decisions such as moving into new product lines, new countries etc.
What does strategic planning require?
Short-term plans and budgets to implement the long-term plan.
Why should managers balance long-term and short-term planning?
Because profit is an important measure of performance but focusing on it too much for one year could cause managers to shift their focus from longer-run performance.
What is planning for sustainable development?
Sustainable development is development that meets the needs of the present world without compromising the ability of future generations to meet their own needs. Planning for issues associated with sustainability takes a longer-term view of the organisation’s operations.
What is planning to create value?
Planning to add value through the way an organisation operates. For example, performing operations in a way that is more efficient than competitors and reducing financial, social or environmental costs in a particular process.
