Chapter 5: Managerial Planning and Goal Setting

Question 0

Goal

Answer 0

A desired future state that the organization attempts to realize

Question 1

Planning is fundamental

Answer 1

All of the other management functions stem from planning

Question 2

Plan

Answer 2

A blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.

Question 3

The organizational planning process

Answer 3

1. Develop the plan
2. Translate the plan
3. Plan operations
4. Execute the plan
5. Monitor and learn

Question 4

1. Develop the plan

Answer 4

• define mission/vision

* set goals

Question 5

2. Translate the plan

Answer 5

• define tactical plans and objectives
• develop strategy map
• define contingency plans and scenarios
• identify intelligence teams

Question 6

3. Plan operations

Answer 6

• define operational goals and plans
• select measures and goals
• set stretch goals
• crisis planning

Question 7

4. Execute the plan

Answer 7

Use:
• management by objective 
• performance dashboards 
• single use plans
• decentralized responsibility

Question 8

5. Monitor and learn

Answer 8

• hold planning revues

* hold operational reviews

Question 9

Organizational mission

Answer 9

The organizations reason for existence

Question 10

Strategic goals

Answer 10

Official goals, broad statements describing the organizations future

Question 11

Strategic plans

Answer 11

Define the action steps the company will take

Question 12

Operational planning

Answer 12

Direct employees and resources. Guide toward efficient and effective performance.

Includes planning approaches:
Management by objectives (MBO)
Single-use plans
Standing plans

Question 13

Characteristics of effective goal setting

Answer 13

• are specific and measurable
• have a defined time period
• cover key result areas
• are challenging but realistic
• are linked to rewards

Question 14

Management by objectives (MBO)

Answer 14

Defined in 1954 by Peter drucker.

Method for defining goals and monitoring performance

Question 15

MBO process

Answer 15

1. Set goals 
• corporate strategic goals
• department goals
• individual goals
2. Develop action plans
3. Review progress
• take corrective action
4. Appraise overall performance

Question 16

MBO benefits

Answer 16

• focuses manager and employee efforts on activities that will lead to goal attainment
• can improve performance at all company levels
• improves employee motivation
• aligns individual and departmental goals with company goals

Question 17

Single-use plans

Answer 17

Achieve one-time goals, programs, and projects

Question 18

Standing plans

Answer 18

Ongoing plans

Policies, rules, procedures

Question 19

Contingency planning

Answer 19

Planning for emergencies, setbacks, or unexpected conditions

Question 20

Building scenarios

Answer 20

A forecasting technique to look at current trends and discontinuities and visualize future possibilities

Question 21

Crisis planning

Answer 21

Planning for unexpected events that may be sudden and devastating

Question 22

Stretch goals

Answer 22

Highly ambitious, clear, compelling, and imaginative goals.

Require innovation but are achievable.

Question 23

Strategic management

Answer 23

Decisions and actions used to formulate and execute strategies that will provide competitively superior fit between the organization and its environment to achieve organizational goals

Question 24

Explicit strategy

Answer 24

The plan of action

Question 25

Competitive advantage

Answer 25

The organizations distinct edge for meeting customer needs

Question 26

Strategies should:

Answer 26

Exploit core competencies Build synergy Deliver value Target customer

Question 27

SWOT analysis

Answer 27

Internal Strengths and Weaknesses | External Opportunities and Threats

Question 28

The BCG matrix

Answer 28

Organizes business along two dimensions: business growth rate and market share

Question 29

Benefits of planning

Answer 29

* provide a source of motivation and commitment * guide resource allocation * guide to action * set a standard of performance

Question 30

Limitations of planning

Answer 30

* creates a false sense of certainty * may cause rigidity in a turbulent environment * can get in the way of intuition and creativity

Question 31

Essential stages of crisis planning

Answer 31

Prevention Preparation

Question 32

Prevention

Answer 32

* build relationships | * detect signals from the environment

Question 33

Preparation

Answer 33

* designate crisis management team and spokesperson * create detailed crisis management plan * set up effective communications system