Questions and Answers
What is Planning?
List two principles that plans must follow.
Specific, Measurable, Agreed, Realistic, Timed.
What are Operational Plans primarily concerned with?
Strategic Plans are developed for how long?
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What is a Mission Statement?
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Planning provides direction for the firm.
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Planning reduces chaos in an organization.
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What does organising mean in management?
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What does Chain of Command refer to?
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What is Span of Control?
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What is the purpose of control in management?
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What are some elements requiring control?
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Study Notes
Planning
- Planning sets goals and objectives along with methods for achievement.
- Principles of effective planning include:
- Specific: Clear objectives.
- Measurable: Easily assessable progress.
- Agreed: Consensus among management members.
- Realistic: Achievable goals set.
- Timed: Established timetables for completion.
Types of Plans: Operational Plans
- Short-term plans focusing on specific tasks.
- Address daily or weekly operational issues.
- Typically created by supervisors for budget implementation.
Types of Plans: Strategic Plans
- Long-term plans outlining the company's vision.
- Concerns market share, profitability, and diversification over a 5-year horizon.
- Developed by senior management and Board of Directors.
Types of Plans: Mission Statement
- Brief overview outlining the organisation's purpose.
- Vital for staff alignment and overall organizational focus.
Importance of Planning in Management: Reducing Uncertainty
- Provides direction across the firm, clarifying employee expectations.
Importance of Planning in Management: Greater Unity
- Ensures that all employees work towards common goals, promoting coordinated efforts among departments.
Importance of Planning in Management: Raising Finance
- Detailed plans are crucial for attracting investors; lack of clarity may deter funding.
Importance of Planning in Management: Facilitating Change
- Plans help anticipate future changes, easing transitions for staff and aligning their attitudes.
Organising
- Involves structuring the workforce effectively to meet business objectives.
Chain of Command
- Represents the hierarchy linking different management levels and the flow of instructions.
Span of Control
- Indicates the number of subordinates reporting to a single manager.
- Influencing factors include:
- Work complexity.
- Staff productivity levels.
- Supervision frequency.
- Managerial capability.
Organising Structure: Functional Structure
- Each department acts as a specialized expertise pool enhancing operational efficiency.
- Facilitates communication flow throughout the organization.
Organising Structure: Matrix Structure
- Promotes improved coordination and communication among team members with diverse skills.
- Fosters innovation, problem-solving, and motivation through varied experience levels.
Control
- Encompasses performance monitoring, comparing actual outcomes to targets, and implementing corrective measures.
Elements Requiring Control: Quality
- Essential for meeting customer demands; includes quality control across all business sectors.
Elements Requiring Control: Staff
- Monitors employee attendance, punctuality, and overall performance.
Elements Requiring Control: Production Costs
- Involves oversight of raw material expenses, machinery costs, and wages to maximize profits.
Elements Requiring Control: Credit Control
- Regulates customer credit limits, preventing costly bad debts through careful management of owed amounts.
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Description
Test your knowledge of key management concepts with these flashcards focusing on planning and types of plans. This quiz covers essential principles of planning, including specificity, measurability, and realism. Ideal for students and professionals in management.
