BOH4M - Planning and Controlling quiz

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Questions and Answers

What is the primary purpose of planning in management?

To strengthen communication among staff

To create a foundation for management functions (correct)

To enhance the control process

To allocate resources efficiently

Which of the following is NOT a benefit of planning?

Enhances action orientation

Strengthens control

Encourages individual creativity without constraints (correct)

Improves focus and flexibility

In the planning process, after defining your objectives, what is the next step?

Set short-range plans

Assess current position (correct)

Analyze action alternatives

Develop premises

What characteristic defines long-range plans in management?

Spans over three years Signup and view all the answers

How does planning facilitate time management?

By prioritizing tasks to manage time efficiently Signup and view all the answers

Strategic plans are characterized by which of the following aspects?

Broad, comprehensive long-term action directions Signup and view all the answers

Which of the following aspects does NOT contribute to enhancing action orientation in planning?

Ignoring changes in market conditions Signup and view all the answers

What is a key function of lower management in terms of planning?

Implementing short-range plans within one year Signup and view all the answers

What is the primary difference between a policy and a procedure?

A policy is a broad guideline for decision-making, while a procedure specifies actions for certain situations. Signup and view all the answers

What are standing plans primarily designed for?

To guide repetitive actions over time. Signup and view all the answers

Which planning method involves preparing for various future scenarios?

Scenario Planning Signup and view all the answers

What does a contingency plan primarily address?

Unexpected events and alternative actions. Signup and view all the answers

In scenario planning, how many different scenarios should an organization ideally create?

Three to four to cover various possibilities. Signup and view all the answers

Which of the following best describes a budget in the context of planning?

A single-use plan that allocates resources for specific activities. Signup and view all the answers

What can scenario planning help organizations achieve?

Analyze opportunities and challenges of different scenarios. Signup and view all the answers

What situation would NOT typically invoke a contingency plan?

Regular day-to-day operational decisions. Signup and view all the answers

What is the first step in the control process?

Establish objectives and standards Signup and view all the answers

Which type of standard measures work efforts that go into a performance task?

Input standard Signup and view all the answers

After measuring actual performance, what is the next step in the control process?

Compare results with objectives and standards Signup and view all the answers

What is the control equation used in the comparison step of the control process?

Desired performance - Actual performance Signup and view all the answers

What aspect is evaluated during an after-action review?

Lessons learned from completed initiatives Signup and view all the answers

Which of the following best describes output standards?

Quantitative and qualitative measures of performance results Signup and view all the answers

Why is accurate measurement of performance critical in the control process?

To identify significant differences between planned and actual outcomes Signup and view all the answers

What does relative comparison utilize as an evaluation benchmark?

Performance achievements of others Signup and view all the answers

What kind of comparison uses past performance as a basis for evaluating current performance?

Historical comparison Signup and view all the answers

In engineering comparison, what primary method is used to set standards?

Time and motion studies Signup and view all the answers

What does management by exception prioritize in the evaluation process?

Substantial differences in performance Signup and view all the answers

What is the purpose of feedforward control in management?

To ensure directions and resources are correct before work begins Signup and view all the answers

Which type of control focuses on problems as they occur during the work process?

Concurrent Controls Signup and view all the answers

In the corrective action process, when should opportunities for improvement be addressed?

When actual performance exceeds standards Signup and view all the answers

What is the focus of preliminary controls?

Setting clear objectives and directions before work begins Signup and view all the answers

What is the goal of management by exception in practice?

To concentrate on significant performance issues Signup and view all the answers

Study Notes

Planning - How and Why Managers Plan

Planning is the process of setting objectives and determining how to achieve them.
Planning creates a foundation for management functions.
Planning includes:
- Defining objectives (specific desired outcomes)
- Assessing the current position (evaluating accomplishments)
- Developing premises/assumptions (anticipating future events)
- Analyzing action alternatives (listing and evaluating options to achieve objectives)
Planning improves focus, flexibility, and adaptability to changing circumstances.
Improves decision-making, action orientation, and a sense of direction.
Planning helps with coordination, time management, and makes the control process more effective.
Planning involves various methods, such as forecasting, contingency planning, scenario planning, and benchmarking.

Types of Plans

Short-range plans: up to one year (Lower Management)
Intermediate-range plans: 1-2 years
Long-range plans: 3+ years (Top Management)
Strategic plans: set broad, comprehensive, longer-term action directions; objectives for the entire organization. This includes SWOT, PEST, Porter's, and BCG analyses.
Standing plans: policies and procedures designed for repeated use.
Policies: broad guidelines for decision-making (e.g., hiring, performance appraisals, promotions, discipline).
Procedures: specific actions to be taken in certain situations (e.g., handbooks, manuals).

Benefits of Planning

Improves Focus and Flexibility: Helps organizations understand their strengths and customer needs. Enables individuals to stay committed to career goals despite challenges. Promotes adaptability to changing circumstances. This means knowing your strengths and weaknesses and having a plan for how to adapt when situations change.
Enhances Action Orientation: This is a proactive approach that emphasizes taking initiative and focusing on results. It involves: creating a performance-oriented sense of direction, ensuring the most important things get priority, making sure resources are used to best advantage, and anticipating problems and opportunities.
Improves Coordination: Aligns lower-level objectives with higher-level goals (means-end chain).
Improves time management: Prioritizes tasks to manage time efficiently (e.g., to-do lists).
Strengthens Control: Provides a framework for measuring progress and making improvements (e.g., specific benchmarks for comparison and correction strategies).

Planning Process

Forecast: Analyzing trends and data to predict future events.
Contingency planning: Developing alternative actions for unexpected events. For example, if a natural disaster takes place, moving business to another location.

Scenario Planning

Prepares for various future scenarios (e.g., economic growth rates).
Scenarios are not wild predictions; they are realistic descriptions of how external factors (politics, tech, economy) could change and interact in the future.
Organizations create 3-4 different scenarios to explore possible future events. Analyze the opportunities and challenges of each scenario; help make informed short- and long-term strategic decisions.
- Example: assessing different potential economic growth scenarios, and preparing for each possibility.

Contingency Planning Example

If a natural disaster occurs, relocate business to another location.
If a competitor opens near, implement specific strategies to maintain market share.

Budget

Plans that allocate resources for activities, serving as single-use plans.
Example: a personal budgeting document.

Planning Methods

Forecasting, contingency planning, scenario planning, benchmarking.

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Description

Based off Planning ppt (21 Nov) and Controlling ppt (22Nov)

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