Chapter 7

Question 1

Decision Making

Answer 1

Is the cornerstone of planning.
Is the catalyst that drives the planning process.
Underlines every aspect of setting goals and formulating plans.

Question 2

Planning

Answer 2

All organizations plan, but not in the same fashion.
All planning occurs within an environment context.
All goals require plans to guide in their achievement.
All goals are tied higher goals and plans.

Question 3

Purposes of Goals

Answer 3

Provide guidance and a unified direction for people in the organization.
Have a strong affect on the quality of other aspects of planning.
Serve as a source of motivation for employees of the organization.

Question 4

Kinds of Goals:

Answer 4

By Level
By Area
By Time Frame

Question 5

Kinds of Goals by Level

Answer 5

Mission statement
Strategic Goals
Tactical Goals
Operational Goals

Question 6

Mission Statement

Answer 6

A statement of an organization’s fundamental purpose.

Question 7

Strategic Goals

Answer 7

Set by top managers of organization that address broad general issues.

Question 8

Tactical Goals

Answer 8

Set by and fro middle managers; their focus is on how to operationalize actions to strategic goals.

Question 9

Operational Goals

Answer 9

Set by and for lower-level managers to address issues associated with tactical goals

Question 10

Kinds of Goals by Area

Answer 10

Goals set for the different functional areas of the organization

Question 11

Kinds of Goals by Time Frame

Answer 11

Goals may be set for long-term, intermediate-term, or short-term time frames and for explicit time frames or open-ended.

Question 12

Who sets goals?

Answer 12

All managers should be involved in the goal-setting process.

Managerial responsibility for goal setting should correspond to the managers’s level in the organization.

Question 13

Managing Multiple Goals

Answer 13

Optimizing allows managers to balance and reconcile inconsistent or conflicting goals.
Managers can pursue one goal and exclude all others or to pursuer mid-range goal.

Question 14

Kinds of Operational Plans

Answer 14

Strategic Plans.
Tactical Plans.
Operational Plans.

Question 15

Strategic Plans

Answer 15

A general plan outlining resource allocation, priorities, and action steps to achieve strategic goals.
The plans are set by and for top management.

Question 16

Tactical Plans

Answer 16

Plan aimed at achieving tactical goals set by and for middle management.

Question 17

Operational Plans

Answer 17

Plans that have a short-term focus.

These plans are set by and for lower-level managers.

Question 18

The Time Dimension of Planning

Answer 18

Based on the principle of commitment. Planning must provide sufficient time to fulfill the managerial commitments involved.

Question 19

Time Frames for Planning

Answer 19

Long-range Plans.
Intermediate Plans.
Short-range Plans.

Question 20

Long-range Plans

Answer 20

More than 5 years, strategic

Question 21

Intermediate Plans

Answer 21

Usually cover from 1 to 5 years and parallel tactical plans.

Are the principle focus of organizational planning efforts.

Question 22

Short-range Plans

Answer 22

Have a time frame of one year or less.

Include action plans and reaction (contingency) plans.

Question 23

Who is responsible for planning?

Answer 23

Planning Staff
Planning Task Force
Board of Directors
Chief Executive Officer
Executive Committee
Line Management

Question 24

Planning Staff

Answer 24

Gather information, coordinate planning activities, and take a broader view than individual managers.

Question 25

Planning Task Force

Answer 25

Created when the organization wants a special circumstance addressed.

Question 26

Board of Directors

Answer 26

Establishes corporate mission and strategy | Engage in strategic planning.

Question 27

Chief Executive Officer

Answer 27

Usually serves as a president or chair of the board of directors. Has a major role in the planning process and implement the strategy.

Question 28

Executive Committee

Answer 28

Composed of top executive within the organization. | Meet regularly for input to the CEO and review strategic plans.

Question 29

Line Management

Answer 29

Persons with formal authority and responsibility for management of the organization. Help to formulate strategy by providing information. Responsive for executing the plans of the top management

Question 30

Contingency Planning

Answer 30

The determination of alternative courses of action to be taken in an intended plan is unexpectedly disrupted or rendered inappropriate. These plans help manager to cope with uncertainty and change.

Question 31

Crisis Management

Answer 31

The set of procedures the organization uses in the event of a disaster or other unexpected calamity.

Question 32

Major Barriers to Goal Setting and Planning

Answer 32

``` Inappropriate goals Improper reward system Dynamic and complex environment Reluctance to establish goals Resistance to change Constraints ```

Question 33

Overcoming the barriers

Answer 33

Understanding the purposes of goals and planning. Communication and participation. Consistency, revision, and updating. Effective reward systems.

Question 34

MBO

Answer 34

Management by Objectives. Effective technique for integrating goal setting and planning by giving subordinates a voice and clarifying what they are expected to accomplish.

Question 35

Using Goals to Implement Plans Strengths:

Answer 35

``` Improved employee motivation Enhance communication Objective performance appraisals Focuses attention on appropriate goals Provides a systematic management philosophy. ```

Question 36

Using Goals to Implement Plans Weaknesses:

Answer 36

Poor implementation of the goal setting process Lack of top-management support for goal setting Delegation of the goal-setting process to lower levels Overemphasis on quantitative goals Too much paperwork and record keeping

Question 37

Criteria for effective goals

Answer 37

``` Specific and measurable Cover key areas Challenging but realistic Defined time period Liked to rewards ```