Questions and Answers
Top-level managers are responsible for the organization's ______ planning.
strategic
Tactical planning transforms broad strategic goals into specific ______ and plans.
goals
Operational planning identifies specific ______ and processes required at lower levels.
procedures
An effective strategy provides a basis for answering five broad questions about how organizations will meet its ______.
Signup and view all the answers
Middle-level management is concerned with ______ planning.
Signup and view all the answers
The support from a management ______ is essential for top-level managers in strategic planning.
Signup and view all the answers
Strategic planning starts with defining the organization's ______ and objectives.
Signup and view all the answers
Operational planning primarily focuses on ______ tasks that need to be completed regularly.
Signup and view all the answers
Strategic Planning is top-level planning which involves making decisions about the organization's long term ______.
Signup and view all the answers
Tactical Planning refers to procedures and transformation of strategic goals/plans with specific ______.
Signup and view all the answers
Operational Planning involves routine tasks repeatedly done by the firm's lower level ______.
Signup and view all the answers
Forecasting is an attempt to predict what may happen in the ______.
Signup and view all the answers
Contingency plans must be prepared by managers, ready for implementation when things do not turn out as they ______.
Signup and view all the answers
Qualitative forecasts rely on opinions of prominent ______.
Signup and view all the answers
Quantitative forecasts use mathematical calculations and statistical analyses of ______.
Signup and view all the answers
Contingency factors called 'trigger points' indicate when the prepared alternative plan should be ______.
Signup and view all the answers
Planning for future states of affairs is also known as ______ planning.
Signup and view all the answers
Benchmarking generally involves external comparisons of a company's practices and ______ with those of other companies.
Signup and view all the answers
A common benchmarking technique is to search for best ______ used by other organizations.
Signup and view all the answers
Participatory planning includes people who will be affected by the plans and those who will be asked to implement them in all planning ______.
Signup and view all the answers
A trigger point change in an attribute represents crossing a ______ and actuates a mechanism reaction.
Signup and view all the answers
Forecasting is an attempt to predict what may happen in the ______.
Signup and view all the answers
A decision is a choice among possible alternative ______.
Signup and view all the answers
The lesson's focus is on how managers make decisions by going through the eight steps of the decision-______ process.
Signup and view all the answers
A __________ decision is repetitive and can be handled using a routine approach.
Signup and view all the answers
An __________ decision applies to the resolution of new or unusual problems.
Signup and view all the answers
Certainty conditions allow managers to make __________ decisions because the results of all alternatives are known.
Signup and view all the answers
Under __________ conditions, decision makers must estimate possible outcomes that may affect their chosen solution.
Signup and view all the answers
The first step in the decision-making process is to identify the __________.
Signup and view all the answers
After identifying the problem, the next step is to identify the decision __________ relevant to resolving the issue.
Signup and view all the answers
A hotel manager making a decision about a new branch represents an example of an __________ problem.
Signup and view all the answers
A manager choosing where to deposit company's funds often considers the bank that offers the highest __________ rate.
Signup and view all the answers
Study Notes
Different Levels of Planning in a Firm
- Planning occurs at various organizational levels: strategic, tactical, and operational.
- Strategic planning is handled by top-level management, focusing on long-term goals and strategies.
- Senior executives like CEOs develop strategic plans with support from management teams.
- Effective strategy answers critical questions regarding scope, market competition, change timing, and financial returns.
Middle-Level Management Planning (Tactical Planning)
- Tactical planning translates broad strategic goals into specific, actionable plans for departments or units.
- This type of planning aligns unit actions with the overarching strategic goals of the organization.
Lower-Level Management Planning (Operational Planning)
- Operational planning involves identifying specific procedures for daily tasks performed by lower-level units.
- Focuses on routine operations to ensure alignment with strategic and tactical objectives.
Integrating Planning Levels
- Modern planning is flexible; managers at all levels can contribute ideas to strategic planning.
- Communication should be open, ensuring that information flows freely throughout the organization.
- All plans must align with the organization’s strategic goals.
Planning Techniques and Tools
- Effective planning uses various techniques such as forecasting, contingency planning, scenario planning, benchmarking, and participatory planning.
- Forecasting: Predicts future trends using quantitative data (statistical analyses) and qualitative insights (expert opinions). Useful in assessing economic indicators.
- Contingency Planning: Prepares alternative actions for unexpected events, guided by "trigger points" indicating when to implement these plans.
- Scenario Planning: Develops multiple future scenarios to strategize against potential challenges like environmental issues or market changes.
- Benchmarking: Compares organizational practices with others to adopt best practices for improved performance. Involves both external and internal benchmarking.
- Participatory Planning: Involves those affected by plans in the planning process, fostering commitment and understanding.
Decision-Making Process
- Decision-making involves a structured process starting from problem identification to evaluating implemented solutions.
- Two types of decisions:
- Structured Decisions: Routine and predictable, handled with established procedures.
- Unstructured Decisions: Unique situations requiring tailored responses.
Conditions Affecting Decision-Making
- Certainty Conditions: Ideal scenarios with known outcomes aiding precise decision-making.
- Risk or Uncertainty Conditions: More common situations requiring estimates and reliance on historical data prior to making decisions.
Steps in the Decision-Making Process (Robbins and Coulter)
- Step 1: Identify the Problem – define the discrepancy between current and desired conditions.
- Step 2: Identify Decision Criteria – determine important factors relevant to solving the problem.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers Lesson 3 on management planning at different levels within a firm. It explores the concepts of strategic, tactical, and operational planning, focusing on how plans must align with overall organizational goals. Test your knowledge on the roles of top-level management in the planning process.
