Management Planning Essentials

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Questions and Answers

What is the primary function of planning in management?

To determine how work will be done in advance (correct)

To enhance communication within the team

To evaluate employee performance systematically

To execute procedures after they have been established

Which of the following is NOT a factor summarizing the essential nature of planning?

Adapting organizational culture (correct)

Contribution to purpose and objectives

It's a function performed by all managers

Planning for efficient organization

What is one reason planning is important in an organization?

To offset uncertainty and change (correct)

To promote informal communication

To bypass resource allocation

To allow immediate decision-making

Which of the following failures can lead to poor management planning?

Underestimating planning premises Signup and view all the answers

How is the efficiency of a plan primarily evaluated?

By its contribution against formulated costs and requirements Signup and view all the answers

What key aspect does planning unify in an organization?

Work activities to act as a cohesive unit Signup and view all the answers

What aspect of planning assists managers in monitoring their subordinates?

Planning allows for control mechanisms Signup and view all the answers

Which of the following is a consequence of failing to implement sound strategies in planning?

Misalignment of resources with objectives Signup and view all the answers

What is the primary function of a vision statement in an organization?

To describe the desired long-term change from the organization's work. Signup and view all the answers

Which of the following characteristics is important for a vision statement?

It should be clear, memorable, and concise. Signup and view all the answers

What typically defines a mission statement?

It states why the organization exists. Signup and view all the answers

What is a recommended maximum word count for an effective mission statement?

55 words Signup and view all the answers

An effective vision should be shaped by whom within an organization?

The leaders of the organization. Signup and view all the answers

What is the primary focus of management by exception?

To inform management only of significant variances Signup and view all the answers

Which of the following statements most accurately represents the core belief behind an organization's purpose?

It encompasses the organization's mission and guiding values. Signup and view all the answers

Why might an organization choose to create a mission tagline?

To facilitate easier communication of the mission. Signup and view all the answers

What is one characteristic of Total Quality Management (TQM)?

It aims for continuous improvement in quality Signup and view all the answers

What is typically the size of a management committee in an organization?

6-10 members Signup and view all the answers

Which of the following statements about core values is true?

They define who the organization wants to be. Signup and view all the answers

Which of the following is NOT a principle of Total Quality Management?

Employee disengagement Signup and view all the answers

What best describes the objective of Total Quality Management?

To achieve operational excellence through continuous improvement Signup and view all the answers

What is the primary goal of Corporate Social Responsibility (CSR)?

To behave ethically while improving overall quality of life Signup and view all the answers

What is the main program under Petron's CSR efforts?

Project H.O.P.E. Signup and view all the answers

How does Procter and Gamble demonstrate its commitment to CSR?

By providing health, hygiene, and convenient products Signup and view all the answers

What is the main thrust of Globe Telecom's CSR program?

Empower community leaders and promote entrepreneurship Signup and view all the answers

What does the Yamaha Motor Group emphasize in its corporate mission?

Contributing to society through corporate activities Signup and view all the answers

What key aspect should an organization's vision framework include?

Guiding philosophy, core values, and purpose Signup and view all the answers

Which of the following best describes the CSR efforts of the Bank mentioned?

Supporting socio-civic, environmental, and educational projects Signup and view all the answers

What does the phrase 'Doing well, Doing good' signify in corporate citizenship?

Balancing between earning profits and contributing positively to society Signup and view all the answers

What is the primary focus of strategic planning?

Overall organizational direction Signup and view all the answers

Which level of management typically engages in tactical planning?

Middle level management Signup and view all the answers

Which of the following is NOT a core value expressed by VGMO - SMART COMMUNICATIONS INC.?

Prioritize profit over people Signup and view all the answers

What defines the purpose of an organization?

A development from core values and beliefs Signup and view all the answers

What type of planning involves the use of specific, well-defined operational procedures?

Operating planning Signup and view all the answers

Which of the following best describes the essence of tactical plans?

They implement and activate strategic planning. Signup and view all the answers

What is a characteristic of a single-use operational plan?

It addresses specific, one-time events or projects. Signup and view all the answers

In the context of planning, what is the primary characteristic of strategic planning activities?

They set the direction for the entire organization. Signup and view all the answers

Study Notes

Planning

Planning is a logical and systematic approach to formulating objectives, programs, policies, procedures, budgets, rules, regulations, and other plans.
Planning is deciding in advance what to do and how the work will be done.

The Nature of Planning

Planning is a function of all managers.
Planning facilitates the accomplishment of business objectives.
Planning is the first management function to be performed before others.
Planning contributes to the efficient organization by evaluating the plan’s efficiency based on its contribution to the objective and the cost of formulating and implementing it.

Importance of Planning

Planning helps to offset uncertainty and change by defining constraints, targets, options, and monitoring and controlling implementation for replanning if needed.
Planning focuses the attention of different personnel within the organization to act as one party.
Planning helps to gain economical and efficient operations by minimizing cost and emphasizing effective procedures and methods.
Planning facilitates control by providing managers with a framework to check on the accomplishments or failures of their subordinates.

Why Managers Fail

Lack of real commitment to planning
Interchanging planning studies with plans
Failure to develop and implement sound strategies
Lack of meaningful objectives and goals
Underestimating the importance of planning premises
Failure to understand the scope of plans

CSR is the ongoing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, local communities, and society at large.

Examples of Company CSR

Petron: Project H.O.P.E. - Helping Filipino children and youth overcome poverty through education.
Procter and Gamble (P&G): Provide products and services that improve consumers’ lives in terms of health, hygiene, and convenience. Their corporate cause is "Live, Learn, and Thrive."
Globe Telecom: Globe Bridging Communities (Globe Bridge Com) - Integrated CSR program aimed at serving the communities where their business operates. Their main thrust is to empower community leaders, propagate entrepreneurship, improve education through IT, and assist in various community development initiatives.
SM Foundation: Helps the less fortunate in the communities it serves within the vicinity of SM Department stores and super malls.
Yamaha Motor Group: Pledge to “Contribute to society through our corporate activities.” Their corporate mission is “Kando Creating Company” which means offering new excitement and a more fulfilling life for people all over the world.

Unified Framework of Plans (Coordinated Plan)

CEO, VPS, Middle Management, First Line or Supervisory Level

Vision Framework

Every organization needs a vision framework that includes its guiding philosophy, core values and beliefs, and purpose.
These should be combined into a mission, which provides a vivid description of what things will be like when it has been achieved.

Vision Framework Breakdown

Vision or Guiding Philosophy: What you want to be.
Core Values and Beliefs: Who you want to be.
Purpose: What you are here for.
Mission: What you will do.

Vision Statement

A one-sentence statement describing the desired long-term change resulting from an organization or program’s work.
Best visions are inspirational, clear, memorable, and concise.

Mission Statement

Clearly communicates what the organization does.
Should be concise, memorable, and easy to share with others.

Core Values & Beliefs, Purpose

Core values and beliefs represent the organization’s basic principles about what is important to the business, its conduct, its social responsibility, and its response to changes in the environment.
Purpose of the organization should develop from the core values and beliefs and convey how the organization fulfills its role.

Types of Planning According to Level of Management

Strategic planning: Top Level Management
Tactical Planning: Middle Level Management
Primary/Operational Planning: First Level Management

Types of Planning

Strategic Planning: Concerned with the entire organization and reflects broad concepts of enterprise operation, beginning with the organization’s mission.
Strategy: Method of shaping a company’s future and involves determining the long-run direction of the organization. It outlines the basic steps management intends to take to achieve its objectives.
Tactical Plans: Means to achieve a strategy and make it work.
Operating Plan: Used by a manager to accomplish his job responsibilities. It can be a single-use plan or an ongoing plan.

Types of Operating Plans

Single-use plan: Program, budget
Ongoing plan: Policy, procedures, rules

Management by Exception

The concept of only bothering management with the most important variances from the planned direction or results of the business.

Management by Committee (MBC)

A group of senior people who take decisions about how a company, or part of a company, is managed.
The Group Management Committee is where all the decisions regarding the direction, strategy, and financing of the group are made.
The typical number of people on a management committee is between 6-10.

Total Quality Management (TQM)

Quest for quality in an organization.
Philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
Management system to utilize all resources to provide continuous customer satisfaction.
Comprehensive and structured approach to organizational management that seeks to improve quality of products and services through continuous refinements in response to feedback.
Management strategy aimed at embedding awareness of quality in all organizational processes.
Objective of TQM: Continuous Improvement.

Principles of TQM

Customer focus
Process improvement
Total involvement

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Description

This quiz covers the key aspects of planning within management, including its nature, importance, and functions. Understanding these concepts will aid in developing efficient organizational strategies and achieving business objectives.