Podcast
Questions and Answers
Which of the following is the most accurate description of the relationship between decision making and planning?
Which of the following is the most accurate description of the relationship between decision making and planning?
- Decision making occurs independently of planning.
- Planning is a substitute for decision making.
- Decision making is the cornerstone of planning. (correct)
- Planning and decision making are unrelated processes.
How does effective goal setting influence organizational planning?
How does effective goal setting influence organizational planning?
- It ensures future goal setting is less important.
- It complicates the planning process.
- It isolates planning from other activities.
- It promotes good planning by providing direction. (correct)
What is the primary focus of a strategic goal?
What is the primary focus of a strategic goal?
- Addressing short-term issues.
- Lower-level management concerns.
- Broad, general organizational direction. (correct)
- Actions necessary to support tactical goals.
In what context does organizational planning occur?
In what context does organizational planning occur?
Which of the following best defines a 'mission statement' in the context of organizational goals?
Which of the following best defines a 'mission statement' in the context of organizational goals?
Which management level is typically associated with setting tactical goals?
Which management level is typically associated with setting tactical goals?
What does 'optimizing' refer to when managing multiple organizational goals?
What does 'optimizing' refer to when managing multiple organizational goals?
What is the primary purpose of a tactical plan?
What is the primary purpose of a tactical plan?
An organization is developing a plan to address a sudden economic downturn. Which plan type is most suitable?
An organization is developing a plan to address a sudden economic downturn. Which plan type is most suitable?
Which of the following groups is typically responsible for establishing an organization's mission and strategy?
Which of the following groups is typically responsible for establishing an organization's mission and strategy?
What is the main role of a 'planning staff' in an organization?
What is the main role of a 'planning staff' in an organization?
An organization is creating a plan to deal with a potential supply chain disruption due to political instability in a key region. What type of planning is being used?
An organization is creating a plan to deal with a potential supply chain disruption due to political instability in a key region. What type of planning is being used?
What is the first action point in contingency planning?
What is the first action point in contingency planning?
In the context of tactical planning, what does it mean to 'evaluate each course of action in light of its goal'?
In the context of tactical planning, what does it mean to 'evaluate each course of action in light of its goal'?
Which of the following describes a 'standing plan'?
Which of the following describes a 'standing plan'?
Which type of operational plan outlines specific steps to be followed in particular circumstances?
Which type of operational plan outlines specific steps to be followed in particular circumstances?
A company implements a new incentive program, but its goals are not being met. According to identified barriers to goal setting and planning, what could be the PRIMARY issue?
A company implements a new incentive program, but its goals are not being met. According to identified barriers to goal setting and planning, what could be the PRIMARY issue?
What is a key characteristic of 'Management by Objectives' (MBO)?
What is a key characteristic of 'Management by Objectives' (MBO)?
In the context of Management By Objectives (MBO), what describes one way that subordinates' performance is evaluated?
In the context of Management By Objectives (MBO), what describes one way that subordinates' performance is evaluated?
Which of the following is a potential weakness of formal goal setting?
Which of the following is a potential weakness of formal goal setting?
Which level of management typically sets operational goals?
Which level of management typically sets operational goals?
What is the time frame typically associated with an intermediate plan?
What is the time frame typically associated with an intermediate plan?
What role does the executive committee play in organizational planning?
What role does the executive committee play in organizational planning?
What does 'crisis management' entail?
What does 'crisis management' entail?
What is the primary focus when developing tactical plans?
What is the primary focus when developing tactical plans?
What is the distinction between a program and a project as a single-use plan?
What is the distinction between a program and a project as a single-use plan?
What do 'rules and regulations' describe in the context of standing plans?
What do 'rules and regulations' describe in the context of standing plans?
Which of the following should be understood to effectively overcome barriers to goal-setting and planning?
Which of the following should be understood to effectively overcome barriers to goal-setting and planning?
What is one of the strengths of formal goal setting?
What is one of the strengths of formal goal setting?
Flashcards
Decision Making
Decision Making
The cornerstone of planning, driving the planning process and underlying the formulation and implementation of plans.
Purpose of Goals
Purpose of Goals
Setting goals provides direction, influences other planning aspects, motivates employees with specific targets, and facilitates evaluation.
Mission Statement
Mission Statement
A statement outlining the organization's fundamental purpose; who are we?
Strategic Goal
Strategic Goal
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Tactical Goal
Tactical Goal
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Operational Goal
Operational Goal
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Optimizing
Optimizing
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Strategic Plan
Strategic Plan
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Tactical Plan
Tactical Plan
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Operational Plan
Operational Plan
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Long-Range Plan
Long-Range Plan
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Intermediate Plan
Intermediate Plan
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Short-Range Plan
Short-Range Plan
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Action Plan
Action Plan
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Reaction plan
Reaction plan
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Planning Staff
Planning Staff
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Planning Task Force
Planning Task Force
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Board of Directors Role
Board of Directors Role
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Chief Executive Officer (CEO)
Chief Executive Officer (CEO)
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Executive Committee
Executive Committee
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Line Management
Line Management
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Contingency Planning
Contingency Planning
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Crisis Management
Crisis Management
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Rules and Regulations
Rules and Regulations
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Program (Plan Type)
Program (Plan Type)
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Goal-Setting Success
Goal-Setting Success
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Management by Objectives (MBO)
Management by Objectives (MBO)
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Formal Goal Setting Weakness
Formal Goal Setting Weakness
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Study Notes
- Decision-making is key to planning and drives the planning process by shaping the creation and execution of all plans
- Planning is influenced by the surrounding environmental factors
Organizational Goals
- Goals offer direction and unity
- Goal-setting influences other planning aspects
- Effective goal setting promotes successful planning
- Successful planning sets the stage for future goal setting
- Specific goals that are moderately challenging can boost employee motivation
- Goals enable performance evaluation and control
Types of Goals by Level
- Goals are established at various organizational levels
- A mission statement defines an organization's core purpose
- Strategic goals are set by top management focusing on broad, general aims
- Tactical goals are set by middle management and focus on achieving strategic goals
- Operational goals set by lower-level managers address short-term issues related to tactical goals
Goals by Area and Timeframe
- Area: Organizations set goals for operations, marketing, finance, quality control, productivity and human resources
- Time Frame: Goals are set across varying timeframes like long-term, intermediate and short-term
Goal Setting Responsibilities
- All managers are involved in goal setting
- Managers set goals aligning with their organizational level
- Optimizing balances and reconciles conflicts among multiple goals
Types of Organizational Plans
- Strategic Plan: A broad plan that outlines resource allocation, priorities and necessary actions to achieve strategic goals
- Tactical Plan: A plan designed to achieve tactical goals and implement specific parts of a strategic plan
- Operational Plan: Focuses on executing tactical plans to reach operational goals
Planning Timeframes
- Long-range Plan: Spans many years, generally five years or more
- Intermediate Plan: Typically covers a period of one to five years
- Short-range Plan: Covers a period of one year or less
- Action Plan: Operationalizes another plan
- Reaction Plan: Responds to unexpected events
Planning Responsibilities
- Planning Staff: Coordinates planning, provides tools, and takes a broad, cross-departmental approach
- Planning Task Force: A team of line managers assembled for a specific task
- Board of Directors: Defines the mission and strategy
- Chief Executive Officer: Plays a key role in planning and implementation
- Executive Committee: Top management offers input to the CEO and reviews strategic plans
- Line Management: Provide valuable insights and carry out plans developed by top management
Contingency Planning
- It involves determining alternative actions if a plan is disrupted or becomes unsuitable
- Crisis management includes procedures for responding to disasters or unexpected calamities
- It is impossible to be fully prepared for all potential crises
Tactical Planning
- Tactical Plan: Executes particular components of a strategic plan to achieve tactical goals
- Tactical plans relate to strategy as battles relate to war
Developing and Executing Tactical Plans
- Developing tactical plans requires understanding overarching strategic plans and tactical goals
- It also requires specifying relevant resources and time issues and recognizing human resource commitments
- Executing tactical plans means evaluating actions in light of goals, distributing resources, monitoring communication and activities, and monitoring goal achievement
Types of Operational Plans
- Single-Use Plans: These are developed for a one-time course of action
- Program: A single-use plan for a large set of activities
- Project: A single-use plan of narrower scope and complexity than a program
- Standing Plans: These are developed for activities that occur regularly
- Policy: A standing plan providing a general response to a specific problem or situation
- Standard Operating Procedure: A standing plan that outlines the steps to be followed in particular circumstances
- Rules and Regulations: Standing plans that describe exactly how specific activities should be carried out
Barriers to Goal Setting and Planning
- Inappropriate goals
- Improper reward system
- Dynamic and complex environment
- Reluctance to establish goals
- Resistance to change
- Constraints
Overcoming Barriers
- Understanding the purpose of goals and planning
- Communication and participation
- Consistency, revision, and updating
- Effective reward system
Management by Objectives (MBO) for Implementing Plans
- Management by Objectives (MBO): This is a formal, collaborative goal-setting process between managers and subordinates
- The extent of goal accomplishment is a key factor in evaluating and rewarding subordinates
Effectiveness of Formal Goal Setting
Strengths (Success)
- Improved motivation
- Enhanced communication
- Allows for objective performance appraisals
- Focuses on appropriate goals and plans
- Identifies managerial talent
- Facilitates control
Weaknesses (Failure)
- Poor implementation
- Lack of top management support
- Overemphasizing quantitative goals
- Assigned goals lead to resentment and lack of commitment
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