Planning and Decision-Making Lecture 4
48 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is NOT a benefit of planning?

  • Impairs adaptability (correct)
  • Intensifies efforts
  • Provides direction
  • Encourages better ways to do things

    • Planning helps in developing a sustained competitive advantage.

    True

    Name one pitfall of planning.

    Could impede change

    Planning involves setting goals and developing a strategy to achieve ______.

    <p>them</p> Signup and view all the answers

    Why might planning create a false sense of certainty?

    <p>Assumptions made during planning may be wrong.</p> Signup and view all the answers

    Match the following benefits of planning with their descriptions:

    <p>Provides direction = Guides actions towards goals Encourages development = Promotes innovative approaches Intensifies efforts = Increases motivation and work rate Leads to persistence = Fosters resilience in facing challenges</p> Signup and view all the answers

    At what management levels can companies use plans?

    <p>At all management levels</p> Signup and view all the answers

    Top-level planners are always in tune with daily operations.

    <p>False</p> Signup and view all the answers

    Which of the following is NOT a step in the effective planning process?

    <p>Establish a budget</p> Signup and view all the answers

    Goal commitment can be developed by making the goal public.

    <p>True</p> Signup and view all the answers

    What is an action plan?

    <p>A list of specific steps, people, resources involved, and a timeline for attaining a goal.</p> Signup and view all the answers

    Proximal goals are _______ goals or subgoals that indicate progress toward distal goals.

    <p>short-term</p> Signup and view all the answers

    Match the following planning concepts with their definitions:

    <p>Goal commitment = Determination to achieve a goal Slack resources = Cushion of extra resources for adaptation Options-based planning = Keeping options open until more information is available Proximal goals = Short-term goals indicating progress toward long-term goals</p> Signup and view all the answers

    What is the purpose of tracking progress in an effective planning process?

    <p>To indicate progress toward distal goals</p> Signup and view all the answers

    Maintaining flexibility in planning entails committing all resources upfront.

    <p>False</p> Signup and view all the answers

    What is one method to maintain flexibility in an effective planning process?

    <p>Options-based planning</p> Signup and view all the answers

    What is the first step in the rational decision-making process?

    <p>Define the problem</p> Signup and view all the answers

    What is the mission statement focused on?

    <p>Providing consumers with the best tasting, most nutritious choices</p> Signup and view all the answers

    Managers should be willing to solve the problem in rational decision-making.

    <p>True</p> Signup and view all the answers

    What are decision criteria used for in the rational decision-making process?

    <p>To contrast alternatives and guide judgments.</p> Signup and view all the answers

    The vision statement includes a goal to provide more value than the competition.

    <p>True</p> Signup and view all the answers

    What are the components of strategic plans as mentioned in the content?

    <p>Markets served, customer service in those markets, positioning against competitors, and required resources.</p> Signup and view all the answers

    In the ranking of decision criteria, a weight of ___ indicates it is critically important.

    <p>5</p> Signup and view all the answers

    Which of the following represents a relative weight in decision-making?

    <p>Setting importance by comparison with other criteria</p> Signup and view all the answers

    The mission statement is to provide consumers with the best tasting, most __________ choices.

    <p>nutritious</p> Signup and view all the answers

    Which of the following is a strategy mentioned in the text?

    <p>Sell branded products for ≤ 14% over cost</p> Signup and view all the answers

    Match the decision-making steps with their corresponding actions:

    <p>Define the problem = Recognize the existing gap Identify decision criteria = List dimensions for evaluation Weigh the criteria = Assign importance to each criterion Choose optimal solutions = Select the best option</p> Signup and view all the answers

    Absolute weights are assigned by comparing each criterion with every other criterion.

    <p>False</p> Signup and view all the answers

    Middle management is responsible for developing and implementing tactical plans.

    <p>True</p> Signup and view all the answers

    What must managers possess to effectively address a problem?

    <p>Knowledge, skills, abilities, and resources.</p> Signup and view all the answers

    Strategic plans clarify how the company will achieve its __________.

    <p>vision</p> Signup and view all the answers

    What term best describes Vertical Space's goal to complete one floor each week?

    <p>A proximal goal</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Mission = Purpose of the organization Vision = Future aspirations of the organization Strategic Plan = Detailed roadmap to achieve goals Tactical Plan = Short-term actions to implement strategies</p> Signup and view all the answers

    Top management is responsible for developing detailed plans for day-to-day operations.

    <p>False</p> Signup and view all the answers

    What are the two main responsibilities of top management regarding planning?

    <p>Developing mission and vision statements, and creating long-term strategic plans.</p> Signup and view all the answers

    Nestlé's mission statement emphasizes its position as the world's leading __________ company.

    <p>nutrition, health and wellness</p> Signup and view all the answers

    How long is a typical strategic plan developed by top management intended to last?

    <p>2 to 5 years</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Mission = Declaration of a company’s purpose Vision = Long-term specific goal that unifies efforts Strategic Plans = Plans developed by top management for long-term objectives Proximal Goal = Short-term goal leading to larger objectives</p> Signup and view all the answers

    A vision statement should not possess a finish line or time frame.

    <p>False</p> Signup and view all the answers

    What is a characteristic of a vision statement?

    <p>It grows out of the mission statement and stretches and challenges the organization.</p> Signup and view all the answers

    What is the primary function of the nominal group technique?

    <p>To rank ideas collectively after independent work.</p> Signup and view all the answers

    The Delphi technique involves face-to-face discussions among experts to reach a consensus.

    <p>False</p> Signup and view all the answers

    What major event influenced a significant slowdown in the global economy as mentioned in the content?

    <p>the coronavirus pandemic</p> Signup and view all the answers

    The nominal group technique improves group decision-making by decreasing __________ conflict.

    <p>a-type</p> Signup and view all the answers

    Match the following cruise companies with their actions during the pandemic:

    <p>Costa Cruises = Cancelled four Asian cruises Royal Caribbean = Cancelled 18 cruises Carnival Cruise Lines = Owned Princess Cruise Lines Princess Cruise Lines = Related to the Diamond Princess incident</p> Signup and view all the answers

    Which company cancelled the most cruises during the pandemic?

    <p>Royal Caribbean</p> Signup and view all the answers

    All companies involved in the cruise industry were experienced in dealing with the coronavirus before its outbreak.

    <p>False</p> Signup and view all the answers

    What should be avoided to improve rational decision-making according to the discussion?

    <p>limits to rational decision-making</p> Signup and view all the answers

    Study Notes

    Lecture 4: Planning and Decision-Making

    • Learning Objectives: By the end of this module, students should be able to discuss the benefits and pitfalls of planning, outline the steps for creating an effective plan, discuss how companies use plans at all management levels, use steps and avoid limitations to rational decision-making, and understand how group decisions and techniques improve decision-making.

    Planning

    • Definition: Planning involves setting goals and developing a strategy to achieve those goals.
    • Benefits: Planning provides direction, encourages better ways to do things, intensifies efforts, leads to persistence, and helps develop a sustained competitive advantage for companies and individuals (employees).
    • Pitfalls: Planning can impede needed adaptation, create a false sense of certainty if based on wrong assumptions, and/or be affected by the disconnect between top-level planners and daily operations.

    Effective Planning Process

    • Steps: The process includes setting goals, developing commitment, developing effective action plans, tracking progress towards goals, and maintaining flexibility.

    Effective Planning: Setting Goals

    • SMART Goals: Goals should be Specific, Measurable, Achievable, Relevant, and Time-bound.

    Effective Planning: Developing Commitment

    • Goal Commitment: This is about the determination to achieve a goal, which can be achieved by setting goals participatively, making them public, and getting repeated support/reinforcement from top management.

    Effective Planning: Develop Action Plans

    • Action Plan Content: A list of specific steps, people involved, and a schedule/timeline for attaining the goal.

    Effective Planning: Tracking Progress

    • Proximal Goals: These are short-term goals that help track progress towards long-term (distal) goals. This includes intermediate milestones.
    • Performance Feedback: Gathering and providing feedback is crucial for tracking progress.

    Effective Planning: Maintaining Flexibility

    • Options-Based Planning: This method involves keeping multiple options open by making simultaneous investments in alternative plans.
    • Slack Resources: Having extra resources is crucial to adapt to unanticipated challenges/opportunities which helps maintain flexibility.

    Planning: From Top to Bottom

    • Strategic Plans (Top Management): Responsible for developing the mission, vision, and 2-5 year strategic plans.
      • Mission: The purpose and reason for a company's existence.
      • Vision: The long-term, specific goal that unifies company efforts and has a defined timeframe.

    Planning: Bending in the Middle

    • Tactical Plans (Middle Management): Implement strategic plans, focusing on 6-24-month objectives like adding a new product line, opening a new store, or creating a marketing campaign.

    Planning: Finishing at the Bottom

    • Operational Plans (Lower-Level): Day-to-day decision making, focused on producing or delivering products/services within a set timeframe (30 days to 6 months).
    • Types of Operational Plans:
      • Single-use plans for unique events
      • Standing plans for frequently recurring situations (policies, procedures, and rules)
      • Budgets/schedules for allocating resources for goals

    Rational Decision-Making

    • Rational Decision-making: This is a systematic process for defining problems, evaluating alternatives, and choosing ideal solutions when making decisions.
      • Steps:
        • Define the problem: identify the gap between the current and desired state. Managers need to be aware of the problem, be willing to deal with it, have the required resources, skills, and abilities.
        • Identify Criteria: establish dimensions to evaluate alternatives.
        • Weigh criteria: assign importance to criteria, either by absolute or relative weights (compare every criteria with each other).
        • Generate alternatives: create possible solutions.
        • Evaluate alternatives: rate alternatives against criteria.
        • Compute weighted scores: multiply rating with weights and add them up to get the weighted scores for each alternative.
        • Select the best solution: the alternative with the highest weighted score is chosen.

    Group Decision-Making

    • Group Advantages: More effective in defining problems and generating solutions but also has pitfalls.
    • Group Pitfalls:
      • Groupthink: Pressuring members for consensus over critical thinking.
      • Domination by individuals: Limiting participation and discussions.
      • Lack of Accountability: individuals may not feel responsible for the outcome of a decision and cause apathy.
      • Equality Bias: Accepts proposals from less competent members.

    Types of Conflict in Group Decision-Making

    • C-Type (Cognitive Conflict): disagreements related to differences of opinion about the issue. Essential for better decisions.
    • A-Type (Affective Conflict): disagreements that become personal due to emotional involvement. This kind of conflict negatively impacts decision-making effectiveness.

    Methods of Generating C-Type Conflict In Group Decision-Making

    • Devil's advocacy: individuals/subgroups question existing solutions and critiques.
    • Dialectical inquiry: presenting opposing solutions/ideas (thesis/antithesis) to stimulate debate and produce a stronger argument.

    Nominal Group and Delphi Techniques

    • Nominal Group Technique: Members quietly brainstorm, share ideas, rank them and the solution is selected based on their average.
    • Delphi Technique: Experts respond to questions/share ideas in writing to reach consensus.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Lecture 4: Planning and Decision-Making PDF

    Description

    This quiz covers key concepts from Lecture 4 on Planning and Decision-Making. Students will explore the benefits and pitfalls of planning, steps for effective planning, and the importance of group decisions. Gain an understanding of how successful companies leverage planning at all management levels.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser