Management Planning Concepts
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Questions and Answers

What defines the parameters within which a manager can function in an organization?

  • Procedures
  • Methods
  • Policies (correct)
  • Rules

Which of the following statements best describes rules in an organization?

  • They detail steps to achieve specific tasks.
  • They specify required actions and maintain discipline. (correct)
  • They outline the overall goals of the organization.
  • They are flexible and can be easily altered.

Which component provides detailed steps for performing work and the sequence of actions?

  • Policies
  • Methods
  • Procedures (correct)
  • Budgets

What is a budget primarily used to express in an organization?

<p>Expected results in numerical terms for a specified period (D)</p> Signup and view all the answers

Which of the following best describes methods in an organizational context?

<p>Prescribed ways that can change based on objectives. (A)</p> Signup and view all the answers

What is the first step in the process of identifying alternative courses of action?

<p>Setting objectives (C)</p> Signup and view all the answers

What primarily influences the selection of the best alternative when mathematical analysis is not possible?

<p>The manager's experience and judgment (D)</p> Signup and view all the answers

Which type of plan is intended to address a recurring problem?

<p>Standing plan (B)</p> Signup and view all the answers

What action is involved in the step of implementing the plan?

<p>Organizing and assembling resources (D)</p> Signup and view all the answers

Which factor is crucial when evaluating financial decisions?

<p>Risk-return trade-off (B)</p> Signup and view all the answers

What is the purpose of follow-up action in management planning?

<p>To monitor the implementation of the plans (C)</p> Signup and view all the answers

What kind of courses of action can managers identify for achieving objectives?

<p>Both routine and innovative actions (D)</p> Signup and view all the answers

Which outcome is expected from the ideal plan in management?

<p>Most profitable with the least negative consequences (A)</p> Signup and view all the answers

What characterizes a single use plan?

<p>Designed for a specific objective or event (D)</p> Signup and view all the answers

Which of the following is NOT a characteristic of standing plans?

<p>Developed for unique situations (C)</p> Signup and view all the answers

Objectives in planning should be expressed in what manner?

<p>Clear, measurable, and written (D)</p> Signup and view all the answers

What is the first step in the planning process?

<p>Setting objectives (B)</p> Signup and view all the answers

What is the primary focus of strategies in an organization?

<p>Defining direction and scope for the future (D)</p> Signup and view all the answers

What is the role of policies in organizational planning?

<p>Guide thinking and direct energies towards a goal (D)</p> Signup and view all the answers

Which of the following best describes premises in the planning process?

<p>The assumptions made about the future (C)</p> Signup and view all the answers

Who should participate in the objective setting process?

<p>Managers and employees at all levels (B)</p> Signup and view all the answers

Which of the following best describes a single use plan's duration?

<p>Varies based on the type of project (D)</p> Signup and view all the answers

What is an example of setting objectives?

<p>Establishing a sales target (B)</p> Signup and view all the answers

What is a critical aspect of setting organizational objectives?

<p>They should be achievable within a clear time period (B)</p> Signup and view all the answers

Which type of strategy involves responding to competitors?

<p>External strategy (D)</p> Signup and view all the answers

Why is accuracy of forecasts important in the planning process?

<p>It ensures plans are based on solid premises (A)</p> Signup and view all the answers

Which activity should be performed after setting objectives?

<p>Developing premises (C)</p> Signup and view all the answers

In regard to planning, what role do alternative courses of action play?

<p>They provide options for achieving set objectives (B)</p> Signup and view all the answers

What is a key characteristic of planning according to Koontz and O'Donnell?

<p>It is an intellectual process with conscious determination. (B)</p> Signup and view all the answers

How does planning help in managing uncertainty?

<p>By allowing managers to anticipate changes and adjust plans. (A)</p> Signup and view all the answers

What is crucial for all managers involved in planning?

<p>Familiarity and agreement on the same assumptions (A)</p> Signup and view all the answers

Which function of management is emphasized as the first in the context of planning?

<p>Planning. (A)</p> Signup and view all the answers

What effect does planning have on overlapping activities within an organization?

<p>It reduces overlapping and wasteful activities. (D)</p> Signup and view all the answers

In what way does planning facilitate decision-making?

<p>It helps in setting targets and predicting future conditions. (B)</p> Signup and view all the answers

What is one of the primary benefits of having clear objectives in planning?

<p>It ensures coordination among departments. (A)</p> Signup and view all the answers

What role does planning play in establishing standards for controlling?

<p>It provides benchmarks against which actual performance can be compared. (C)</p> Signup and view all the answers

Which aspect of planning encourages the generation of new ideas?

<p>The opportunity for managers to develop innovative ideas. (D)</p> Signup and view all the answers

What is the main focus of planning in an organization?

<p>Achieving objectives (B)</p> Signup and view all the answers

Which statement best describes the nature of planning in management?

<p>It serves as a base for other management functions. (C)</p> Signup and view all the answers

Which of the following is NOT a characteristic of planning?

<p>Planning is elitist (A)</p> Signup and view all the answers

How is planning characterized in terms of time orientation?

<p>It is futuristic. (C)</p> Signup and view all the answers

Which of the following best explains the role of decision-making in planning?

<p>It involves selecting from various alternatives. (D)</p> Signup and view all the answers

What does it mean for planning to be continuous?

<p>There are ongoing cycles of planning and implementation. (D)</p> Signup and view all the answers

At what level is planning required within an organization?

<p>All levels and departments (B)</p> Signup and view all the answers

What does the pervasive nature of planning indicate about its necessity?

<p>It applies to every department at every level. (D)</p> Signup and view all the answers

Flashcards

Planning Definition

Planning is a conscious process of determining the course of action, using purpose, facts, and estimates to make decisions.

Planning Meaning

Planning means deciding beforehand what to do and how to do it.

Planning Objectives

Planning involves setting targets and developing action plans to reach these targets.

Planning & Time

Plans require a timeframe, and time needs careful management.

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Planning Importance: Direction

Planning provides clear guidance on how work should be done.

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Planning Importance: Risk Reduction

Planning helps anticipate change and adjust plans strategically.

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Planning Importance: Efficiency

Planning reduces overlapping and wasteful activities to improve efficiency.

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Planning Importance: Innovation

Planning fosters new ideas and directs action for future growth.

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Management function

Planning is a core management activity that supports other management tasks.

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Pervasive planning

Planning is needed at all organizational levels and within every department.

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Continuous planning

Planning is an ongoing process; one plan leads to another.

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Future-oriented planning

Planning considers future events and adapts plans accordingly.

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Decision-making in planning

Planning involves choosing from different options and courses of action.

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Organizational goals

These are the overall aims that an organization sets for itself.

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Planning Hierarchy

Planning is needed at various levels in an organization as the scope differs.

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Developing Premises

Making assumptions about the future to create plans. These are the base for plans.

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Planning Process

A multi-step approach to create plans (e.g., identifying, evaluating options).

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Setting Objectives

Specifying what the organization wants to achieve. Objectives cascade to various levels.

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Forecasting

A method to gather information and create premises about the future.

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Planning Premises

Assumptions about the future that form the foundation of plans.

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Organizational Objectives

Goals set for the entire organization, influencing all departments’ actions.

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Alternative Courses of Action

Different options available for achieving planned objectives.

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Single-Use Plan

A plan created for a specific, one-time event or project, lasting potentially a day or several months. It loses relevance after the event/project is completed.

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Standing Plan

A plan designed for activities that happen regularly over a period of time. It's updated as needed to reflect changing business needs.

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Objective in Planning

The desired outcome or result that management wants to achieve through its operations. It should be measurable, specific, and have a timeframe.

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Strategy in Planning

A long-term direction for an organization. It considers potential threats and opportunities, shaping the big picture

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Internal Strategy

A plan developed within the organization to address its own internal needs and goals.

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External Strategy

A plan formulated to respond to external pressures, such as competitor moves or market changes.

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Policy in Planning

A general guideline that provides direction and interpretation for a strategy. It's a broader framework.

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What is the purpose of a policy?

Policies clarify the overall direction of an organization's strategy. They provide a framework for decision-making and guide actions.

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Identify Alternatives

This step involves brainstorming different possible ways to achieve the organization's objectives. It can involve exploring routine, innovative, or combined approaches.

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Evaluate Alternatives

This step thoroughly examines the advantages and disadvantages of each identified solution. Assess risks, potential rewards, and overall feasibility of each option.

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Select Best Alternative

The best option from all alternatives is chosen for implementation, considering factors like feasibility, profitability, and potential negative consequences.

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Implement Plan

The chosen best plan is put into action, involving organizing resources and taking the necessary steps to execute the plan.

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Follow Up Action

This ongoing process involves monitoring the implemented plan, making sure everything is being executed according to schedule. Deviations are identified, and corrective actions are taken to stay on track.

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What is the purpose of evaluating alternatives?

Evaluating alternatives allows managers to compare the advantages and disadvantages of each proposed solution to identify the most effective and viable course of action for achieving organizational goals.

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What are Policies?

Policies are guidelines for managing the organization. They set general rules and boundaries for decision-making. Policies can be adapted as needed.

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What are Procedures?

Procedures are step-by-step instructions on how to do something. They specify the exact sequence of actions to follow. Procedures usually enforce a policy.

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What are Rules?

Rules are strict, specific statements about what is allowed and not allowed. They don't allow for flexibility and aim to maintain clear boundaries.

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What are Methods?

Methods are different ways to perform a task effectively. They help find the best approach to save time, money, and effort. Methods can be adapted.

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What is a Programme?

A programme is a detailed plan for a project. It includes objectives, policies, procedures, resources, and a timeline for implementation.

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Study Notes

Planning Definition

  • Planning is an intellectual process.
  • It involves a conscious determination of action courses.
  • Decisions are based on purpose, facts, and estimations.

Planning Meaning

  • Planning is deciding what and how to do things in advance.
  • It's a fundamental managerial function.
  • It involves setting objectives and developing appropriate actions.
  • Plans need timelines, but time is finite.
  • Plans must be used effectively.

Importance of Planning

  • Planning provides direction for action.
  • It clarifies stated objectives for departments and individuals.
  • It reduces uncertainty by enabling managers to anticipate changes.
  • It facilitates coordination among different units.
  • It helps avoid waste by reducing overlapping actions.
  • Planning promotes innovative ideas.
  • It's the foundation for effective management.
  • Planning is a prerequisite for controlling.

Features of Planning

  • It's a mental exercise, involving decision-making.
  • It focuses on achieving objectives.
  • It's a primary management function.
  • It is pervasive across all management levels and departments.
  • It's a continuous process.

Limitations of Planning

  • It can lead to rigidity.
  • It can be time-consuming and costly.
  • It may not guarantee success.
  • It may not work effectively in dynamic environments.
  • It may reduce creativity.

Planning Process

  • Setting objectives: Defining what an organization intends to achieve.
  • Developing premises: Making assumptions about the future.
  • Identifying alternative courses of action.
  • Evaluating alternative courses of action.
  • Selecting the best alternative.
  • Implementing the plan.
  • Follow-up action: Monitoring and correcting deviations.

Types of Plans

  • Single-use plan: A plan tailored for a one-time event or project.
  • Standing plan: These plans are utilized repeatedly for recurring activities.

Classifications of Standing Plans

  • Objectives: Desired results – They are measurable, often quantitative, and have a timeframe.
  • Strategies: Long-term, broad plans that outline how to achieve objectives.
  • Policies: General guidelines to direct thinking or activities.
  • Procedures: Sequence of steps to follow for a recurring task.
  • Rules: Firmly stated requirements for specific situations.
  • Methods: Prescribed ways to approach tasks efficiently.
  • Programmes: Detailed list of tasks, objectives, and resources.
  • Budgets: Numerical estimations of anticipated results.

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Related Documents

CBSE Class 12 Business Studies Chapter 4 - Planning Notes PDF

Description

This quiz explores the essential concepts of planning in management. It covers definitions, significance, features, and how effective planning contributes to organizational success. Test your understanding of how planning influences decision-making and coordination in management.

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