Week 4 - Planning 1

Question 1

involves selecting missions and objectives as well as the actions to
achieve them, which requires decision making that is, choosing a course
of action from among alternatives.

Answer 1

Planning

Question 2

choosing a goal and developing a method of strategy to
achieve that goal.

Answer 2

Planning

Question 3

bridges the gap from where we are to where we want to go

Answer 3

Planning

Question 4

helps management pull the individual to achieve common
goals by provision of well-defined objectives

Answer 4

Planning

Question 5

first and foremost function of management

Answer 5

Planning

Question 6

What the organization want to accomplish and how to
reach the establish/sited goals. By ____ comes that to be
follow, in order to reach and achieve goal.

Answer 6

Provide direction

Question 7

Planning reduce uncertainty by look ahead to
anticipate changes.
• Manager can estimate their consider impact of changes and then they can
develop response to these changes.

Answer 7

Reduce uncertainty

Question 8

When work activities are coordinated
around established plans redundancy can be minimized

Answer 8

Minimize waste and redundancy

Question 9

Planning helps in controlling and monitoring
the work that either this works is on its right path or not.

Answer 9

Provide ability in controlling

Question 10

The basic purpose or function or tasks of an enterprise or agency or any
part of it.
 In every social system, enterprises have a basic function or task
assigned to them by society.
 _____ means that the whole is greater than its parts

Answer 10

Mission or purpose

Synergy

Question 11

are the ends toward which activity is aimed.
 They represent not only the end point of planning, but also the end
toward which organizing, staffing, leading, and controlling are aimed.

Answer 11

Objectices and goals

Question 12

the determination of the basic long-term objectives of an
enterprise and the adoption of courses of action and allocation of
resources necessary to achieve these goals.

Answer 12

Strategies

Question 13

general statements or understandings that guide or channel
thinking in decision making. These are, at times, expressions of the
company culture and practices that involved over time.

Answer 13

Policies

Question 14

Example of Policies are:

Answer 14

 Customer policy: Merchandise can be returned by customers
within one week from the date of purchase.
 Personnel policy: Promote from within starting a specific level.
o New hires should not be first-degree relatives of present
employees.
 Pricing policy: Fixed-price policy
 Minimum Cash balance: All funds in excess of a specified minimum
cash balance should be invested in marketable securities.
Policies are usually contained in memos or, more frequently, in
company manuals.

Question 15

Merchandise can be returned by customers
within one week from the date of purchase

Answer 15

Customer policy

Question 16

Promote from within starting a specific level.
o New hires should not be first-degree relatives of present
employees.

Answer 16

Personnel policy

Question 17

Fixed-price policy

Answer 17

Pricing policy

Question 18

All funds in excess of a specified minimum
cash balance should be invested in marketable securities.
Policies are usually contained in memos or, more frequently, in
company manuals.

Answer 18

Minimum cash balance

Question 19

Plans that establish a required method of handling future
activities.
These are guides to action, rather than to thinking, and they detail
the exact manner in which certain activities must be accomplished.

Answer 19

Procedurez

Question 20

spell out specific required actions or non-actions, allowing no
discretion.

Answer 20

Rules

Question 21

are usually the simplest type of plan.
 different from policies. While policies are meant to guide
decision making by marking off areas in which managers can use their
discretion, these allow no discretion in their application.

Answer 21

Rules

Question 22

Example of rules:

Answer 22

 Customer’s Refund: No refund will be given for returned
merchandise if, invoice is not returned by the customer.
 Uniform Rule: Employees not in uniform will not be allowed to
render service during the day.
 Gate pass: Equipment brought out of company premises must be
accompanied by a gate pass.

Question 23

No refund will be given for returned
merchandise if, invoice is not returned by the customer

Answer 23

Customer refund

Question 24

Employees not in uniform will not be allowed to
render service during the day

Answer 24

Uniform rule

Question 25

Equipment brought out of company premises must be accompanied by a gate pass

Answer 25

Gate pass

Question 26

are a complex of goals, policies, procedures, rules, task assignments, steps to be taken, resources to be employed, and other elements necessary to carry out a given course of action.  these are ordinarily supported by budget

Answer 26

Programs

Question 27

statement of expected results expressed in numerical terms.  this may be called a “quantified” plan. In fact the

Answer 27

Budget

Question 28

The practical steps listed below, and diagramed in Figure 4.1, are of general application. In practice, however, one must study the feasibility of possible courses of action at each stage. The practical steps listed below, and diagramed in Figure 4.1, are of general application. In practice, however, one must study the feasibility of possible courses of action at each stage.

Answer 28

1. Being aware of opportunities: This activity involves collecting and analyzing relevant external information which define opportunities or threat to the firm's business. Include the following:  Time market  Competition  What customers want  Our strengths  Our weaknesses 2. Establishing objectives The second step in planning is to establish objectives for the entire enterprise and then for each subordinate work unit.  Determine where we want to be and what we want to accomplish and when 3. Developing Premises By considering planning premises: In what environment (internal or external) –will our plan operate? Premises: Assumptions about the environment in which the plan is to be carried out. Principle of Planning premises: the more thoroughly individuals charged with planning understand and agree to utilize consistent planning premises, the more coordinated enterprise planning will be. 4. Determining alternative courses The fourth step in planning is to search for and examine alternative courses of action, especially those not immediately apparent. There is seldom a plan for which reasonable alternatives do not exist, and quite often an alternative that is not obvious proves to be the best. 5. Evaluating alternative courses After seeking out alternative courses and examining their strong and weak points, the next step is to evaluate alternatives by weighing them in light of premises and goals. One course may appear to be the most profitable but may require a large cash outlay and have a slow payback; another may look less profitable but may involve less risk; still another may better suit the company’s long-range objectives. 6. Selecting a course This is the point at which the plan is adopted - the real point of decision making. An analysis and evaluation of alternative courses will disclose that two or more are advisable, and the manager may decide to follow several courses rather than the one best course. 7. Formulating derivative plans When a decision is made, planning is seldom complete, and a seventh step is indicated. Derivative plans are almost invariably required to support the basic plan. 8. Quantifying plans by budgeting After decision are made and plans are set, the final step in giving them meaning , as was indicated in the discussion on types of plans, is to quantify them by converting them into budgets. The overall budget of an enterprise represents the sum total of income and expenses, with resultant profit or surplus, and the budgets of major balance sheet items such as cash and capital expenditures. Each department or program of a business or some other enterprise can have its own budgets, usually of expenses and capital expenditures, which tie into the overall budget.

Question 29

Assumptions about the environment in which the plan is to be carried out

Answer 29

Premises

Question 30

the more thoroughly individuals charged with planning understand and agree to utilize consistent planning premises, the more coordinated enterprise planning will be.

Answer 30

Principles of planning premises

Question 31

External Variables:

Answer 31

the rate of growth of the economy and/or the industry - the rate of inflation and its expected impact costs and prices - the continuance or discontinuance of certain government policies which have a favorable or unfavorable impact on the operations of the firm (i.e., high interest rates). - the expected market strategies of key competitors.

Question 32

Internal Variables

Answer 32

- the level of internally generated funds to support investments - the level of labor productivity in the company's factories. - the company's total staffing level. - the continuance of certain operating policies (i.e., rate if dividend, choice of production technology, supply source, etc.)

Question 33

Planning activity and the responsibility for planning at different levels in the firm. The scope or coverage of the plans, i.e., whether it covers to the whole firm, a department or other subunit, or just one individual, generally depends on the level in the organization at which the planning occurs. At the top management levels, plan generally covers the whole firm. At the middle or sub-unit levels, the plans may cover only particular sections or departments.

Answer 33

-read-

Question 34

_______ denotes planning activities at the top level and cover the entire organizational activities.  Determine the long-term objectives.  Generate plans to achieve the objectives bearing in mind the probable changes in environment.

Answer 34

Corporate planning

Question 35

is segmental and it is undertaken for each major function of the organization like:  Production/operation,  Marketing, finance,  Human resource/personnel etc.  At the second level, this type of planning is undertaking for sub-functions within each major function.

Answer 35

Functional planning

Question 36

 Deciding on objectives of the organization,  Deciding on changes on these objectives;  Deciding on the resources used to attain these objectives;  Policies that manage the acquisition, use and disposition of these resources.

Answer 36

Strategic planning

Question 37

plans usually cover all the functional areas of the business and are affected within the existing and long-term framework of economic, social, and technological factors.  Analysis of environmental factors, particularly with respect to how the organization relates to its competition and environment.

Answer 37

Lobg term planning

Question 38

 These plan are aimed at sustaining organization in its production and distribution of current products or services to the existing markets.

Answer 38

Short term planning

Question 39

planning involves designing suitable courses of action in hope of likely changes in the relevant environment.  this planning are organizations responses come after the environmental changes have taken place.

Answer 39

Proactive and reactive planning

Question 40

form of well-structured process involving different steps.

Answer 40

Formal planning

Question 41

This planning process is based on managers memory of events, perception, and got feeling rather than based on systematic evaluation of environmental happenings.

Answer 41

Informal planning

Question 42

These are a means to achieve long term goals.

Answer 42

Short term goals

Question 43

This means at the end of the period it should be possible to determine whether or not objective has been achieved

Answer 43

Verifiable objectives

Question 44

This is often called a Profit plan

Answer 44

financial operating budget

Question 45

This activity involves collecting and analyzing relevant external information which define opportunities or threat to the firm's business. Include the following:  Time market  Competition  What customers want  Our strengths  Our weaknesses

Answer 45

Being aware of opportunities

Question 46

The second step in planning is to establish objectives for the entire enterprise and then for each subordinate work unit.  Determine where we want to be and what we want to accomplish and when

Answer 46

Establishing objectives

Question 47

By considering planning premises: In what environment (internal or external) –will our plan operate? Premises: Assumptions about the environment in which the plan is to be carried out. Principle of Planning premises: the more thoroughly individuals charged with planning understand and agree to utilize consistent planning premises, the more coordinated enterprise planning will be.

Answer 47

Developing premises

Question 48

The fourth step in planning is to search for and examine alternative courses of action, especially those not immediately apparent. There is seldom a plan for which reasonable alternatives do not exist, and quite often an alternative that is not obvious proves to be the best.

Answer 48

Determining alternative course

Question 49

After seeking out alternative courses and examining their strong and weak points, the next step is to evaluate alternatives by weighing them in light of premises and goals. One course may appear to be the most profitable but may require a large cash outlay and have a slow payback; another may look less profitable but may involve less risk; still another may better suit the company’s long-range objectives.

Answer 49

Evaluating alternative course

Question 50

This is the point at which the plan is adopted - the real point of decision making. An analysis and evaluation of alternative courses will disclose that two or more are advisable, and the manager may decide to follow several courses rather than the one best course.

Answer 50

Selecting a course

Question 51

When a decision is made, planning is seldom complete, and a seventh step is indicated. Derivative plans are almost invariably required to support the basic plan.

Answer 51

Formulating derivative plans

Question 52

After decision are made and plans are set, the final step in giving them meaning , as was indicated in the discussion on types of plans, is to quantify them by converting them into budgets. The overall budget of an enterprise represents the sum total of income and expenses, with resultant profit or surplus, and the budgets of major balance sheet items such as cash and capital expenditures. Each department or program of a business or some other enterprise can have its own budgets, usually of expenses and capital expenditures, which tie into the overall budget.

Answer 52

Quantifying plans by budgeting

Question 53

This includes:  The setting of objectives  Organizing the work, people, and systems to enable those objectives to be attained.  Motivating through the planning process of the plan and developing

Answer 53

Corporate planning