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When the degree of environmental uncertainty is high, what type of plans should be developed?
What is the main consideration for determining the length of future commitments in planning?
Which approach to planning involves employees at each level developing plans suited to their needs?
What is a potential criticism of planning?
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What is a characteristic of a traditional, top-down approach to planning?
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What is the primary benefit of using a workable document as a plan?
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When should managers plan for a longer time frame?
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What is the primary advantage of using an inclusive approach to planning?
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What is a characteristic of a plan that is tailored to particular needs at each lower level?
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Which of the following is a key consideration in developing plans?
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Study Notes
Types of Plans
- Strategic plans apply to the entire organization, establishing overall goals and positioning the organization in its environment.
- Operational plans specify details on how to achieve overall goals, covering short time periods.
Characteristics of Plans
- Long-term plans have a time frame beyond three years, although this definition has changed with increasingly uncertain environments.
- Short-term plans cover one year or less.
- Specific plans are clearly defined with little room for interpretation.
- Directional plans are flexible, setting general guidelines without limiting courses of action.
- Single-use plans are one-time plans for unique situations.
- Standing plans are ongoing, providing guidance for repeated activities.
Establishing Goals
- Traditional goal setting involves top-down overall goal establishment, broken down into subgoals for each level.
- Subgoals constrain subordinate behavior, assuming top managers know what is best for the organization.
Approaches to Planning
- Contingency factors in planning include degree of environmental uncertainty and length of future commitments.
- Traditional, top-down approach involves planning by top managers, with formal planning departments and plans flowing down to lower levels.
- Inclusive approach involves employees at each level developing plans suited to their needs, leading to greater sense of planning importance and more effective plan usage.
Criticisms of Planning
- Planning may create rigidity, forcing a course of action in fluid environments.
- Other criticisms exist, but are not specified.
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Description
This quiz covers the different types of plans in management, including strategic plans and operational plans, and their role in achieving organizational goals.
