Questions and Answers
What is the purpose of goal-setting in the planning process?
Which type of plan focuses on the entire organization?
What characterizes a standing plan?
Which step in planning involves creating actionable strategies?
Signup and view all the answers
What is a characteristic of long-term plans?
Signup and view all the answers
What does specificity in planning refer to?
Signup and view all the answers
What is a characteristic of a functional organizational design?
Signup and view all the answers
Which organizational design allows for continuous project work without defined boundaries?
Signup and view all the answers
What is the first step in the delegation process?
Signup and view all the answers
In which type of organization do relationships primarily stem from friendship?
Signup and view all the answers
What does accountability entail in a delegated task?
Signup and view all the answers
Which organizational design focuses on collaboration among specialists from different departments?
Signup and view all the answers
What type of planning involves making decisions about the organization's long-term goals?
Signup and view all the answers
Which type of decision is considered repetitive and can be easily handled?
Signup and view all the answers
What does benchmarking primarily involve?
Signup and view all the answers
Under which condition do managers face ideal situations for decision making?
Signup and view all the answers
What is the first step in the decision-making process?
Signup and view all the answers
Which of the following best describes unstructured decisions?
Signup and view all the answers
What is meant by Division of Labour?
Signup and view all the answers
Which type of organizational structure addresses authority rights?
Signup and view all the answers
What are line departments primarily responsible for?
Signup and view all the answers
Which approach forms subdivisions based on specialization?
Signup and view all the answers
What is a key characteristic of modern organizational design?
Signup and view all the answers
What does organizational design aim to achieve?
Signup and view all the answers
Study Notes
Planning
- Planning: A process of setting organizational goals and objectives to guide efforts.
- Goal-Setting: Identification of specific targets to achieve.
- Vision: A future-oriented mental image of the organization's desired state.
- Mission: Fundamental purpose and core identity of an organization.
- Objectives: Actionable steps necessary to reach desired outcomes.
Types of Plans
- Organizational Plan: A comprehensive plan encompassing the entire organization.
- Strategic Plan: Defines long-term goals for the organization as a whole.
- Operational Plan: Focuses on specific units or areas within the organization.
- Long-Term Plans: Extend beyond three years in duration.
- Short-Term Plans: Designed for a period of less than one year.
- Directional Plans: Provide general guidelines, allowing for flexibility.
- Specific Plans: Clearly and distinctly defined plans, limited to one-time use.
- Single Use Plans: Created for specific situations and utilized only once.
- Standing Plans: Continual plans that guide ongoing operations.
Steps in Planning (Schermhorn)
- Define: Clarify the goals.
- Determine: Identify important resources required.
- Develop: Create strategies and initiatives.
- Analyze: Evaluate data and information.
- Implement: Execute the plan and monitor progress.
Planning at Different Levels in the Firm
- Top-Level Management: Engaged in strategic planning focused on long-term goals.
- Middle-Level Management: Involved in tactical planning, transforming strategic goals into actionable procedures.
- Frontline/Lower-Level Management: Handles operational planning, focusing on routine tasks.
Key Concepts in Planning
- Trigger Point: Signifies a change in relevant attributes or conditions.
- Forecasting: The practice of predicting future trends or behaviors.
- Benchmarking: Comparing company practices and technologies against industry standards.
Decision Making
- Decision Making: Starts with identifying problems and concludes with evaluating solutions.
- Structured Decisions: Repetitive decisions that follow pre-established protocols.
- Unstructured Decisions: Unique problem resolutions that lack predefined procedures.
Decision Making Conditions
- Certainty Conditions: Ideal scenarios allowing for confident decision-making.
- Risk/Uncertainty Conditions: More prevalent situations requiring careful evaluation and judgment.
Organizing
- Division of Labour: Allocating specific tasks to individuals to improve efficiency.
- Coordination: Establishing procedures that connect and manage work activities.
Types of Organization Structure
- Vertical Organization Structure: Clarifies authority relationships and reporting lines.
- Horizontal Organization Structure: Encourages independence and collaboration across units.
-
Organizational Structures:
- Vertical: Addresses authority issues.
- Horizontal: Promotes independence and collaboration.
- Network: A collection of independent entities cooperating for common goals.
Types of Departments
- Line Departments: Directly contribute to the production and core activities of the firm.
- Staff Departments: Support the functions of line departments.
- Functional Approach: Organizes divisions based on specialized functions.
Departmentalization Approaches
- Functional Approach: Groups departments based on similar tasks and specializations.
- Divisional Approach: Organizes departments according to product lines or geographical areas.
- Matrix Approach: Combines features of both functional and divisional structures for flexible collaboration.
Organizational Design Theories
-
Traditional Theories:
- Simple Design: Few departments with a wide span of control.
- Functional Design: Groups similar specialties for efficiency.
- Divisional Design: Divides the organization into separate business units.
-
Modern Theories:
- Team Design: Utilizes workgroups or teams for project execution.
- Matrix-Project Design: Combines specialists from various departments for project-based work.
- Boundary-less Design: Lacks rigid structure, allowing fluid work based on project needs.
Delegation
- Delegation: The process of assigning new tasks and responsibilities to individuals.
- Authority: The legal right to make decisions and act on behalf of the organization.
- Responsibility: Indicates the obligation to fulfill assigned tasks effectively.
- Accountability: The obligation to explain actions and decisions.
Steps in Delegation
- Clearly define goals before delegating tasks.
- Select an appropriate person for the task.
- Assign responsibility along with the authority to act.
- Discuss and evaluate planned activities with the assignee.
- Ensure ample time is given to complete tasks.
- Monitor progress and provide support as needed.
- Confirm that the task has been completed satisfactorily.
Organizational Types
- Formal Organizations: Formally established by management for operational efficiency.
- Informal Organizations: Emerge naturally from social relationships and friendships among employees.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on the foundational concepts of planning in business, including goal-setting, vision, mission, and objectives. This quiz covers various types of organizational plans and their functions. Enhance your understanding of strategic and operational planning.
