Unit 8

Question 1

The Planning Process steps:

Answer 1

1. Define your objectives.
2. Determine where you stand regarding the objectives.
3. Develop presumptions regarding future conditions.
4. Analyze and choose among action alternatives.
5. Implement the plan and evaluate results.

Question 2

Benefits of Planning:

Answer 2

• Improves focus and flexibility
• Improves action orientation
• Improves coordination
• Improves time management
• Improves control

Question 3

Short-range plans

Answer 3

1 year or less, They focus on operational details and resource management.

Question 4

Medium-range plans

Answer 4

1 to 2 years

Question 5

Long-range plans

Answer 5

3 or more years, They address broader strategic goals such as market expansion, product development, or organizational transformation.

Question 6

Operational Plans

Answer 6

Define what needs to be done in specific areas to implement strategic plans.

Question 7

Policies and Procedures include:

Answer 7

• Standing plans
• Policies
• Rules and Procedures
• Single use plans

Question 8

Standing Plans

Answer 8

Designed for repeated use

Question 9

Policies

Answer 9

Broad guidelines for marking decisions

Question 10

Rules and Procedures

Answer 10

Plans that describe exactly what actions are to be taken.

Question 11

Single use plans

Answer 11

Only used once to meet the needs of the situation in a timely manner.

Question 12

Budgets

Answer 12

Single-use plans that commit resources to activities and projects.

Question 13

Project Schedules

Answer 13

One-time activities that have clear beginning and end points.

Question 14

Forecasting

Answer 14

Making assumptions about what will happen in the future.

Question 15

Qualitative Forecasting

Answer 15

Uses expert opinions

Question 16

Quantitative Forecasting

Answer 16

Uses mathematical and statistical analysis

Question 17

Contingency Planning

Answer 17

Having a back-up plan

Question 18

Scenario Planning

Answer 18

A long-term back-up plan

Question 19

Benchmarking

Answer 19

Use of external comparisons to better evaluate current performance and identify possible actions for the future.

Question 20

Staff Planners

Answer 20

Coordinating the planning function for the organization or one of its major components. There is sometimes gaps between staff planners and in-house managers.

Question 21

Participation and Involvement

Answer 21

Include people who will be affected by the plans and/or will help implement them.

Question 22

The Control Process steps:

Answer 22

1. Establish performance objectives and standards.
2. Measure actual performance.
3. Compare actual performance with objectives and standards.
4. Take necessary actions.

Question 23

Feedforward Controls

Answer 23

Done before a work activity begins, ensures that objectives are clear, proper directions are established, and the right resources are available.

Question 24

Concurrent Controls

Answer 24

Focused on what happens during the work process and monitor ongoing operations to make sure they are being done according to the plan.

Question 25

Feedback Controls

Answer 25

Take place after work is completed. Focus is on the quality of finished product. Provides useful information in improvement.

Question 26

Internal Control

Answer 26

Allows motivated individuals and groups to exercise self-discipline in doing their job.

Question 27

External Control

Answer 27

Making sure employees are meeting standards with supervisors and managers overseeing the process.

Question 28

Management by Objectives

Answer 28

Supervisor/team leader and workers jointly set performance objectives. A structured process of regular communication in which they jointly review results.

Question 29

Employee Discipline System

Answer 29

Discipline is the act of influencing behaviour through reprimand.

Question 30

Reprimands

Answer 30

A warning that a manager or supervisor gives an employee in an attempt to improve unwanted behavior.

Question 31

Progressive Discipline

Answer 31

Ties reprimands to the severity and frequency of the employee's infractions, seeks to achieve compliance with the least extreme reprimand possible.

Question 32

Break-Even Analysis

Answer 32

Determination of the point at which sales revenue are sufficient to cover the cost.

Question 33

Purchasing Control

Answer 33

Intends to leverage buying power by buying more and getting it cheaper, committing to a small number of suppliers and working together in supplier-purchaser partnership.

Question 34

Inventory Control

Answer 34

Goals to ensure inventory is just the right size to meet needs, thus minimizing money tied up in inventory.