Management Goal Setting and Planning

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Questions and Answers

What is the purpose of the means-ends chain in goal setting?

To establish a hierarchy of low-level goals only

To eliminate the need for lower-level goals

To create vague objectives for departments

To ensure higher-level goals are achieved through lower-level goals (correct)

Which step is NOT part of the goal-setting process?

Evaluate available resources

Review the organization’s mission statement

Maintain flexibility in plans (correct)

Write down the goals and communicate them

In Management by Objectives (MBO), how are rewards allocated?

According to the employee's tenure

On the basis of progress towards the goals (correct)

Based on the manager's discretion

Randomly among all employees

Which factor affects the length of future commitments in planning?

The commitment concept regarding current plans Signup and view all the answers

What is the primary focus when framing business obstacles?

Understanding, defining, and prioritizing issues Signup and view all the answers

What aspect of goal setting tends to lose clarity and focus at lower levels of management?

Goals as interpreted by lower-level managers Signup and view all the answers

How does environmental uncertainty influence a manager's planning?

It determines the degree of flexibility required in plans Signup and view all the answers

Which of the following is considered a key element in effective goal setting?

Goal specificity Signup and view all the answers

What is the first step in the decision-making process?

Identifying a problem Signup and view all the answers

Which step involves analyzing the strengths and weaknesses of each alternative?

Analyzing alternatives Signup and view all the answers

What does social responsibility encompass beyond legal obligations?

Social actions addressing popular needs Signup and view all the answers

Which step of the decision-making process requires gaining commitment from those executing the decision?

Implementing the alternative Signup and view all the answers

In which step are alternatives generated without evaluation?

Developing alternatives Signup and view all the answers

What is the six step in the decision-making process?

Selecting an alternative Signup and view all the answers

What describes values-based management?

Establishing and upholding shared organizational values Signup and view all the answers

What does the term 'greening of management' refer to?

Minimizing processes that harm the environment Signup and view all the answers

What best describes a programmed decision?

A decision made with established procedures and rules. Signup and view all the answers

What is escalation of commitment in decision making?

Increasing investment in a failing project. Signup and view all the answers

Which term describes a decision style characterized by a reliance on linear and logical processing of information?

Linear Thinking Style Signup and view all the answers

What do unstructured problems typically require?

Unique and custom-made solutions. Signup and view all the answers

Which decision-making approach is taken by managers who aim to maximize the maximum profit?

Maximax Signup and view all the answers

What characteristic is most common among lower-level managers when making decisions?

They frequently use programmed decisions. Signup and view all the answers

What does a policy represent in the context of decision making?

A clear guide for handling routine decisions. Signup and view all the answers

Which choice represents an approach where the manager seeks to minimize the maximum regret?

Minimax Signup and view all the answers

What does the anchoring effect describe?

Judging the quality of a product solely based on its price relative to another. Signup and view all the answers

Which bias involves making decisions based on an initial reference point?

Anchoring Effect Signup and view all the answers

Which statement best describes immediate gratification bias?

Making impulsive decisions to satisfy immediate desires. Signup and view all the answers

What is the implication of overconfidence bias in college students when writing a paper?

They often underestimate the time required to complete their work. Signup and view all the answers

What does selective perception bias entail?

Focusing on a singular aspect at the expense of broader understanding. Signup and view all the answers

Which statement illustrates hindsight bias?

Believing one knew the outcome of an event after it occurred. Signup and view all the answers

What is an example of the sunk costs error?

Continuing to watch a poor movie because the ticket was already purchased. Signup and view all the answers

Which of these best describes self-serving bias?

Blaming others for personal failures while attributing success to one's own efforts. Signup and view all the answers

Which type of plan is designed specifically for a unique situation?

Single-Use Plan Signup and view all the answers

What characterizes financial goals within an organization?

Concerned with expected internal financial performance Signup and view all the answers

What differentiates long-term plans from short-term plans?

Long-term plans extend beyond three years Signup and view all the answers

What is a common feature of directional plans?

They provide general guidelines but allow flexibility. Signup and view all the answers

How does traditional goal setting approach the development of goals?

Top management sets broad goals assuming they have the best perspective. Signup and view all the answers

Which type of plan provides ongoing guidance for activities carried out repeatedly?

Standing Plan Signup and view all the answers

What is a key difference between stated goals and real goals in an organization?

Stated goals are public-facing and may not reflect actual operations. Signup and view all the answers

What is the focus of strategic goals in an organization?

External environmental performance Signup and view all the answers

Study Notes

Goal Setting

Steps in Goal Setting: Review organizational mission statements, evaluate available resources, determine goals individually or collaboratively, write down and communicate goals, and review results to assess goal achievement.
Means-Ends Chain: An integrated network of goals that aligns lower-level goals with higher-level goals. Lower-level goals serve as means to achieve higher-level goals (ends).
Management by Objectives (MBO): A performance management approach where employees and managers jointly set specific performance goals.
Key elements of MBO: Goal specificity, participative decision-making, an explicit performance/evaluation period, and feedback.

Planning

Contingency Factors in a Manager’s Planning: Considerations include the manager's level, degree of environmental uncertainty, and length of future commitments.
Types of Plans: Strategic plans (higher levels), operational plans (lower levels), short-term plans (one year or less), long-term plans (beyond three years), specific plans (clearly defined), directional plans (flexible guidelines), single-use plans (unique situations), and standing plans (repeated activities).
Traditional Goal Setting: Top management sets broad goals that are broken down into subgoals. Assumes that top management has the best understanding of the "big picture."

Decision Making

8 Steps of Decision-Making Process: Identify a problem, identify decision criteria, allocate weights to the criteria, develop alternatives, analyze alternatives, select an alternative, implement the selected alternative, and evaluate the decision's effectiveness.
Decision-Making Styles: Thinking style, which considers the source of information (external data or internal feelings) and how the information is processed (linear or nonlinear).
Linear Thinking Style: Rational, logical, and analytical approach to decision-making.

Social Responsiveness: A firm engaging in social actions in response to social needs.
Social Responsibility: A company's intention to act in ways that are good for society, beyond legal and economic obligations.
Social Screening: Evaluating job applications and resumes to select suitable candidates based on criteria.
Greening of Management: Minimizing environmental harm in business processes.
Values-Based Management: Managing based on established and upheld shared values within an organization.

Ethics

Ethics: Determining right and wrong behavior.
Unstructured Problems: New or unusual problems with ambiguous or incomplete information, requiring custom-made solutions.
Programmed Decisions: Routine decisions based on established procedures, rules, and policies, commonly used by lower-level managers for familiar problems.
Non-programmed Decisions: Unique and nonrecurring decisions, requiring unique solutions, used for unstructured problems.

Decision-Making Biases

Heuristics (Mental Shortcuts): Making quick decisions based on prior experiences or rules of thumb, potentially leading to suboptimal outcomes.
Overconfidence Bias: Overestimating one's abilities or knowledge, leading to inaccurate predictions.
Immediate Gratification Bias: Seeking immediate rewards over long-term benefits.
Sunk Costs Errors: Continuing a course of action despite negative results because of past investments of time or resources.
Anchoring effect: Over-reliance on the first piece of information encountered when making a decision.
Selective Perception Bias: Paying attention only to information that confirms pre-existing beliefs.
Confirmation Bias: Seeking information that supports existing beliefs while ignoring contradicting evidence.
Self-Serving Bias: Attributing successes to internal factors and failures to external factors.
Hindsight Bias: Believing that an event was predictable after it has occurred.

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Description

This quiz explores essential concepts in management, focusing on effective goal setting and planning strategies. Topics include the steps in goal setting, the means-ends chain, and the Management by Objectives (MBO) approach, along with contingency factors in planning. Test your understanding of these crucial management principles.