Management Functions: Planning Overview
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Questions and Answers

What is a distinguishing characteristic of a project compared to a program?

  • Projects can be handled independently from their programs. (correct)
  • Projects have no target dates for completion.
  • Projects are broader in focus than programs.
  • Projects are typically larger than programs.

Which of the following best describes the purpose of a budget?

  • A summary of employee performance evaluations.
  • A legal requirement for financial reporting.
  • A historical record of past organizational activities.
  • A fundamental planning instrument for resource allocation. (correct)

Long-range planning typically focuses on what time frame?

  • Less than one year.
  • 5 to 10 years. (correct)
  • 1 to 5 years.
  • More than 10 years.

What duration does intermediate-range planning generally cover?

<p>1 to 5 years. (B)</p> Signup and view all the answers

Which type of plan is primarily concerned with guiding immediate operational activities?

<p>Operational plan. (D)</p> Signup and view all the answers

What is the primary focus of strategic planning?

<p>Changing competitive positions and overall performance. (B)</p> Signup and view all the answers

Which of the following best describes short-range planning?

<p>Operational plans derived from longer-range plans. (B)</p> Signup and view all the answers

Which classification of plans focuses on decisions regarding resource allocation and priorities?

<p>Strategic plans. (D)</p> Signup and view all the answers

What is the primary purpose of budgeting in the planning process?

<p>To represent the sum total of income and expenses (D)</p> Signup and view all the answers

Which principle focuses on how well the plans contribute to achieving corporate objectives?

<p>Principle of contribution to objectives (D)</p> Signup and view all the answers

What must a manager decide when developing an action plan for implementation?

<p>Who will do what and available resources (D)</p> Signup and view all the answers

What is a key reason for modifying plans after implementation?

<p>The changing environment (D)</p> Signup and view all the answers

What challenge is associated with the principle of sound & consistent premising?

<p>Assessing various environmental forces and trends (B)</p> Signup and view all the answers

Which aspect is critical for monitoring progress after plan implementation?

<p>Evaluating reported results (A)</p> Signup and view all the answers

How can effective budgeting impact the planning process?

<p>It helps add together various plans into a coherent structure (C)</p> Signup and view all the answers

When assessing the accuracy of premises, why might large corporations hire various experts?

<p>To improve planning and forecasting capacities (A)</p> Signup and view all the answers

What is the primary purpose of strategic planning?

<p>To determine the organization's overall strategies and missions. (A)</p> Signup and view all the answers

What does tactical planning primarily focus on?

<p>Achieving specific parts of the strategic plan. (D)</p> Signup and view all the answers

Which of the following is a characteristic of operational planning?

<p>Primarily concerned with day-to-day activities. (C)</p> Signup and view all the answers

What crucial question is addressed during the strategic planning process?

<p>Where do we want to be? (C)</p> Signup and view all the answers

Contingency planning is primarily concerned with what aspect?

<p>Anticipating changes in the environment and preparing alternatives. (A)</p> Signup and view all the answers

Which level of management is primarily responsible for operational planning?

<p>Departmental managers. (B)</p> Signup and view all the answers

In the context of planning, what does the SWOT analysis evaluate?

<p>Strengths, Weaknesses, Opportunities, and Threats. (B)</p> Signup and view all the answers

What is a key aspect of monitoring progress in strategic planning?

<p>Assessing achievements against set objectives. (A)</p> Signup and view all the answers

Flashcards

Budgeting

Converting plans into numerical values (income and expenses) to measure progress.

Action Plan

Detailed plan on how to implement a decision; it answers who, what, when, how, and why.

Controlling

Monitoring a plan's progress, evaluating results, and making necessary adjustments.

Planning Premises

Assumptions about the environment during plan implementation, affecting plan accuracy.

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Principle of Contribution to Objectives

Plans are evaluated on their ability to efficiently achieve corporate objectives.

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Sound Premising

Accurate assumptions create stronger, more reliable plans.

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Environmental Forces

External factors impacting the organization's ability to implement a plan.

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Resource Allocation

Determining human and material resources for plan implementation.

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Project vs. Program

A project is a smaller, more focused initiative within a larger program, with a set completion date. A program encompasses multiple projects and has a broader scope.

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What is a budget?

A budget is a numerical representation of resources allocated to various activities within an organization over a specific time period. It helps track spending and resource utilization.

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Long-range planning

Long-range planning focuses on the organization's future direction, typically spanning 5-10 years, and is concerned with the big picture, not immediate actions.

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Intermediate-range planning

Intermediate-range planning bridges the gap between long-range and short-range plans, covering a timeframe of 1-5 years, depending on the organization's needs.

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Short-range planning

Short-range plans, often derived from long-range or intermediate plans, focus on immediate actions and operations, usually spanning less than a year.

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Strategic planning

Strategic planning sets the overall direction of the organization by outlining resource allocation, priorities, and actions to achieve strategic goals.

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Tactical planning

Tactical planning focuses on implementing strategic plans, breaking down broad objectives into specific actions with timelines and resources.

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Operational planning

Operational planning focuses on the day-to-day execution of activities to achieve tactical objectives, ensuring efficient resource utilization and smooth operations.

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Strategic Planning Level

The highest level of planning, focusing on long-term goals, overall direction, and resource allocation. It's typically conducted by top management.

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Tactical Planning Level

The middle level of planning, focusing on implementing specific parts of the strategic plan within departments. It has a shorter timeframe and narrower scope.

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Operational Planning Level

The lowest level of planning, focusing on daily or weekly tasks and activities to achieve operational goals. It's detailed and specific.

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Contingency Planning

A plan to manage unexpected events or changes in the environment. It's proactive and involves creating alternative plans based on different scenarios.

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SWOT Analysis

A tool used to identify internal strengths and weaknesses, as well as external opportunities and threats. It helps assess the organization's current position.

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What are the three key questions answered in strategic planning?

Strategic planning answers: Where are we now? Where do we want to be? How do we get there? These questions guide the organization's direction and strategy.

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What is the role of internal and external environmental analyses in strategic planning?

These analyses help identify factors impacting the organization, such as competitors, market trends, and internal resources. They provide context for strategic decision-making.

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How are strategic, tactical, and operational plans related?

These plans are interconnected. Strategic planning sets the overall direction, tactical plans implement parts of the strategy, and operational plans focus on daily activities to achieve those goals.

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Study Notes

Defining Planning

  • Management functions include planning, organizing, staffing, directing, and controlling
  • Objectives are necessary to guide organizational activities
  • Planning is crucial for achieving objectives, determining actions
  • Individuals, businesses, etc. create plans throughout their lives
  • Planning is the first management function and involves deciding what, how, when, and who will perform tasks
  • Planning bridges the gap between current state and desired future
  • Planning encompasses analyzing, evaluating, and selecting possible courses of action to reach objectives

Importance of Planning

  • Essential to all organizations (business, non-business, small, large)
  • Improves likelihood of success by anticipating future needs
  • Helps avoid random, ad-hoc decisions
  • Planning establishes objectives for the organization
  • Critical for minimizing risk and uncertainty in a dynamic environment
  • Guides organizational efforts toward achieving objectives
  • Facilitates better control & assessment of performance
  • Improves organizational effectiveness by utilizing resources to maximize achievement of objectives

Where Does Planning Start

  • Planning occurs at all organizational levels
  • Top-down approach: Senior managers establish overall goals, lower levels develop departmental plans within the framework
  • Bottom-up approach: Operational-level managers initiate plans which are then integrated into an overall organizational plan

Basic Characteristics of Planning

  • Goal-oriented: Central purpose is achieving goals
  • All-pervasive: Affect all levels of management
  • Intellectual activity & future-oriented: Utilizes present experiences to forecast future actions

Types/Classification of Plans

  • Based on repetitiveness:
    • Standing plans: Used repeatedly to handle recurring issues (mission, goals, strategies, policies, procedures, rules)
    • Single-use plans: Created for one-time issues, (programs, projects, budgets)
  • Based on time horizon:
    • Long-range: Future direction of the organization (5-10+ years)
    • Intermediate-range: Between long-term and short-term (1-5 years)
    • Short-range: Day-to-day / week-to-week (less than 1 year)
  • Based on scope/breadth:
    • Strategic plans: Overall direction (major resource allocation/priorities, action/steps to organizational goals)
    • Tactical plans: Implement strategic plans in specific areas
    • Operational plans: Day-to-day operations/tasks which support tactical goals

The Planning Process

  • Understanding the existing situation
  • Forecasting
  • Establishing objectives
  • Determining alternative courses of action
  • Evaluating alternative courses of action
  • Selecting a course of action
  • Developing derivative plans (to support main plans)
  • Numberizing and budgeting the plans (e.g. in financial terms)
  • Implementing the plan
  • Controlling and evaluating the results

Principles of Planning

  • Principle of contribution to objectives
  • Principle of sound & consistent premising (assumptions)
  • Principles of limiting factors
  • Principles of commitment
  • Principles of coordinate effort
  • Principles of timing
  • Principle of efficiency
  • Principle of flexibility
  • Principle of navigational change
  • Principles of acceptance

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Related Documents

Chapter Two: Planning Function PDF

Description

This quiz explores the fundamental concept of planning within management functions. It covers the importance of planning in achieving objectives, decision-making processes, and how it helps organizations navigate towards their desired future. Test your understanding of how planning serves as a critical management tool.

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