Podcast
Questions and Answers
Top-level managers are responsible for the organization's ______ planning.
Top-level managers are responsible for the organization's ______ planning.
strategic
Tactical planning transforms broad strategic goals into specific ______ and plans.
Tactical planning transforms broad strategic goals into specific ______ and plans.
goals
Operational planning identifies specific ______ and processes required at lower levels.
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 ______.
An effective strategy provides a basis for answering five broad questions about how organizations will meet its ______.
Middle-level management is concerned with ______ planning.
Middle-level management is concerned with ______ planning.
The support from a management ______ is essential for top-level managers in strategic planning.
The support from a management ______ is essential for top-level managers in strategic planning.
Strategic planning starts with defining the organization's ______ and objectives.
Strategic planning starts with defining the organization's ______ and objectives.
Operational planning primarily focuses on ______ tasks that need to be completed regularly.
Operational planning primarily focuses on ______ tasks that need to be completed regularly.
Strategic Planning is top-level planning which involves making decisions about the organization's long term ______.
Strategic Planning is top-level planning which involves making decisions about the organization's long term ______.
Tactical Planning refers to procedures and transformation of strategic goals/plans with specific ______.
Tactical Planning refers to procedures and transformation of strategic goals/plans with specific ______.
Operational Planning involves routine tasks repeatedly done by the firm's lower level ______.
Operational Planning involves routine tasks repeatedly done by the firm's lower level ______.
Forecasting is an attempt to predict what may happen in the ______.
Forecasting is an attempt to predict what may happen in the ______.
Contingency plans must be prepared by managers, ready for implementation when things do not turn out as they ______.
Contingency plans must be prepared by managers, ready for implementation when things do not turn out as they ______.
Qualitative forecasts rely on opinions of prominent ______.
Qualitative forecasts rely on opinions of prominent ______.
Quantitative forecasts use mathematical calculations and statistical analyses of ______.
Quantitative forecasts use mathematical calculations and statistical analyses of ______.
Contingency factors called 'trigger points' indicate when the prepared alternative plan should be ______.
Contingency factors called 'trigger points' indicate when the prepared alternative plan should be ______.
Planning for future states of affairs is also known as ______ planning.
Planning for future states of affairs is also known as ______ planning.
Benchmarking generally involves external comparisons of a company's practices and ______ with those of other companies.
Benchmarking generally involves external comparisons of a company's practices and ______ with those of other companies.
A common benchmarking technique is to search for best ______ used by other organizations.
A common benchmarking technique is to search for best ______ used by other organizations.
Participatory planning includes people who will be affected by the plans and those who will be asked to implement them in all planning ______.
Participatory planning includes people who will be affected by the plans and those who will be asked to implement them in all planning ______.
A trigger point change in an attribute represents crossing a ______ and actuates a mechanism reaction.
A trigger point change in an attribute represents crossing a ______ and actuates a mechanism reaction.
Forecasting is an attempt to predict what may happen in the ______.
Forecasting is an attempt to predict what may happen in the ______.
A decision is a choice among possible alternative ______.
A decision is a choice among possible alternative ______.
The lesson's focus is on how managers make decisions by going through the eight steps of the decision-______ process.
The lesson's focus is on how managers make decisions by going through the eight steps of the decision-______ process.
A __________ decision is repetitive and can be handled using a routine approach.
A __________ decision is repetitive and can be handled using a routine approach.
An __________ decision applies to the resolution of new or unusual problems.
An __________ decision applies to the resolution of new or unusual problems.
Certainty conditions allow managers to make __________ decisions because the results of all alternatives are known.
Certainty conditions allow managers to make __________ decisions because the results of all alternatives are known.
Under __________ conditions, decision makers must estimate possible outcomes that may affect their chosen solution.
Under __________ conditions, decision makers must estimate possible outcomes that may affect their chosen solution.
The first step in the decision-making process is to identify the __________.
The first step in the decision-making process is to identify the __________.
After identifying the problem, the next step is to identify the decision __________ relevant to resolving the issue.
After identifying the problem, the next step is to identify the decision __________ relevant to resolving the issue.
A hotel manager making a decision about a new branch represents an example of an __________ problem.
A hotel manager making a decision about a new branch represents an example of an __________ problem.
A manager choosing where to deposit company's funds often considers the bank that offers the highest __________ rate.
A manager choosing where to deposit company's funds often considers the bank that offers the highest __________ rate.
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.
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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.
