MGT 300: Chapter 5
Operational planning
1 week to 52 weeks
Strategic planning
1 year to 5 years
Rule
Designates specific required action
Project
Has less scope and complexity than a program
First-line management
Operational planning
In which phase of the planning/control cycle does a company have the opportunity to get a project back on track if it is failing to meet assigned objectives?
Step 4 - Control the direction by taking corrective action
Top management
Strategic planning
Managers and subordinates meeting to appraise performance, discuss results, and allocate rewards is the _____ step in management by objectives.
fourth
In business, a specific commitment to achieve a measurable result within a stated period of time is called a _____.
goal
A _____ statement expresses what the company stands for, its core priorities and what its products contribute to the world.
values
A company's ______ statement should provide a clear sense of the future and the actions needed to get there.
vision
Vague
As many planes as possible should arrive on time.
Standing
For activities that occur repeatedly over time
Top and middle management must be committed
Average gains in productivity are significantly higher when there is buy-in to the goal setting process from upper levels of management
What are the two control steps in the planning/control cycle?
Control the direction by taking corrective actions. and Control the direction by comparing results with the plan.
__ involves using sound reasoning to analyze situations, make decisions, and solve problems.
Critical thinking
Which of these represent measurable goals? (select all that apply)
Customer service agents should improve customer relations by making 10 follow-up calls each week. and No more than 50% of cars should be sold below MSRP.
An action plan
outlines the tactics that will be used to achieve a goal.
A business strategy, also known as a strategic _______, sets the long-term goals and direction for an organization.
plan
Goals that are challenging but are realistic and achievable within the scope of the resources available to a company satisfy which aspect of SMART goal criteria?
Attainable
Program
Encompasses a range of projects or activities
Performance objective
Express the objective as an outcome or end-result
Behavioral objective
Express the objective as the behaviors needed to achieve an outcome
Learning objective
Express the objective in terms of acquiring knowledge or competencies
Which of these two goals meets the SMART goal characteristic of specifying a target date?
File tax return by April 15 and Increase sales by the end of the first quarter
Single-use
For activities not likely to be repeated in the future
What are three things that should be included in a firm's business model? (Select all that apply.)
How the firm will market to customers, A description of the industry the firm is entering, and The firm's expected revenues and expenses
What are three specific reasons why organizations should adopt planning and strategic management?
It encourages new ideas., It provides direction and momentum., and It helps the firm develop a sustainable competitive advantage.
What is the first step in management by objectives?
Managers and employees jointly set objectives for the employee.
Who is responsible for tactical planning?
Middle management
Specific
Ninety % of planes should arrive within 15 minutes of their scheduled arrival time.
_________ planning is used to determine how to accomplish specific tasks with available resources within the next 1 -- 52 weeks.
Operational
Policy
Outlines general response to a designated problem
Procedure
Outlines response to particular circumstances
A _____ goal is one that is specific, measurable, attainable, results-oriented, and has target dates.
SMART
Goals must be applied organization-wide
The goal setting program cannot be applied in only some divisions or departments; it must be put in place throughout the whole company
Goals must cascade
The strategic goals set at the top must align downward with more specific, short-term goals set at lower organizational levels
For goal setting to be successful, what must occur? (Check all that apply)
Top management must be highly committed, Goals must cascade through the organization, and Goals must be applied organization wide
True or false: One reason a company might create a bad strategic plan is because they make incorrect assumptions about what will happen in the market going forward.
True
The vision statement should answer which of these questions?
What do we want to become?
A mission statement addresses which question?
What is our reason for being?
What would occur in the third step of management by objectives?
You and your manager meet to review progress.
A business plan is a document that outlines
a proposed firm's goals, strategy for achieving them, and standards for measuring success.
Managers and subordinates jointly setting subordinate objectives is the _____ step in management by objectives.
first
SMART goals (select all that apply).
have target dates, are specific, are results-oriented, are attainable, and are measurable
A means-end chain is used in planning to show _____.
how goals are connected across an organization
Strategic planning can help encourage new ideas by stressing the importance of ______ in achieving long-range success.
innovation
Which of these are types of objectives used in management by objectives (MBO)? (Select all that apply)
learning, performance, and behavioral
Short-term (tactical) goals are connected to long-term (strategic) goals in a hierarchy called the _______.
means-end chain
A company's _____ is the purpose of the organization.
mission
The ______ statement expresses the purpose of an organization.
mission
The question "what is our reason for being?" should be answered by the organization's _______ statement.
mission
A firm's business _______ should include a description of the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses.
model
It is the function of the _____ to take the strategic plan and develop actionable short-term goals that a business can achieve.
operating plan
First-line managers are typically responsible for performing ______ planning within the organization.
operational
What are four steps anyone can take to become a more proactive learner?
participate in professional conversations, take initiative and rely on yourself, focus on solutions rather than problems, and set realistic goals
The document that details how a company's goals are to be met is called a(n)_____.
plan
Making the plan and carrying out the plan represent the two _____ steps in the planning/control cycle.
planning
You can use the continuous feedback loop known as the _____ cycle to ensure you're headed in the right direction once you've made plans.
planning/control
A _____ plan outlines the general response to a designated problem or situation.
policy
A(n) _____ learning orientation represents the desire to learn and improve one's knowledge, soft-skills, and other characteristics in pursuit of personal development.
proactive
A _____ plan outlines responses to particular problems or circumstances.
procedure
An organization has a sustainable competitive advantage when it can, for an extended period of time,
produce goods and services more effectively than its competitors do.
Critical thinkers
remain open-minded when solving problems, consider alternative solutions to problems, don't make rash decisions during planning, and obtain and consider a wide range of information before passing judgment
Strategic planning (select all that apply)
requires visionary and directional thinking and should communicate general goals and ways to achieve them
When stating a goal, it is a good idea to start with the word "To" and follow with an action-oriented verb such as "increase" or "acquire." This describes the _____ aspect of SMART goals.
results-oriented
Employees preparing action plans represents the _____ step in management by objectives.
second
Tactical goals are considered _____-term goals.
short
A _____ plan directs activity, such as a project, that is unlikely to be repeated.
single-use
The letter S in the acronym SMART goal stands for what aspect of a good goal?
specific
Top managers use _______ planning to determine what the organization's long-term goals should be for the next one to five years with the resources they expect to have available.
strategic
Organizations use ________ planning to determine what contributions the departments or work units can make toward the organization's strategic priorities and policies during the next 6 -- 24 months.
tactical
Select the three types of planning involved in the strategic management process.
tactical, strategic, and operational
What behavior would a proactive learner most likely exhibit?
taking initiative
The company's mission statement tells us
the company's reason for being.
The fourth and final step in management by objectives involves _____.
the manager making a performance appraisal and rewarding the employee according to the results
The manager and employee periodically reviewing the employee's performance represents the _____ step in management by objectives.
third
Operating plans (select all that apply)
turn strategic plans into actionable short-term goals and break long-term output into short-term targets or goals
An organization's vision represents
where the organization wants to go.
_____ help us to stay focused on the big picture, concentrate and make quicker decisions rather than putting them off, and ignore unimportant matters.
Deadlines
What are two advantages for a company that establishes deadlines?
Deadlines aid in making quicker decisions and Deadlines motivate employees to focus on the goal
Place the steps of the planning/control cycle in the correct order, with step one listed first (at the top) and step four listed last (at the bottom)
Make the plan, Carry out the plan, Control the direction by comparing results with the plan, and Control the direction by correcting deviations and/or improving future plans
Middle management
Tactical planning
What is the second step in management by objectives?
The employee develops an action plan.
A(n) ______ plan defines the course of action a company should follow to achieve the stated goal.
action
Short-term goals (select all that apply)
are connected to strategic goals, are also known as tactical goals, and are also known as operational goals
A document that outlines a proposed firm's goals, its strategy for achieving those goals, and the standards for measuring success is known as a _______.
business plan
The process of ensuring that the strategic goals set at the top align with more specific short-term goals at lower organizational levels is known as _____ goals.
cascading
In terms of SMART goals, an "attainable" goal is _____.
challenging but achievable
An organization's ability to produce goods or services more effectively than its competitors is referred to as its
competitive advantage.
Which of the following verbs would be appropriate for a results-oriented goal? (select all that apply)
complete, acquire, and decrease
A company's strategy can best be described as a(n) _______ about what long-term goals or direction to pursue for the survival or prosperity of the organization.
educated guess
Cascading goals is the process of
ensuring that strategic goals at the top align with the short-term goals set at lower levels in the organization
Which of the following are reasons that employers value a proactive learning orientation? (Select all that apply)
it helps drive employee creativity and innovation and employees need to refine and enhance their skills sets throughout their careers
What are the two types of goals in business?
long-term and short-term
The two planning steps in the planning/control cycle involve _____.
making the plan and carrying out the plan
Strategic ______ is a process that involves managers from all levels of the organization in the formulation and the implementation of strategies and strategic goals.
management
In the strategic management process, the organization's strategies and strategic goals are formulated and implemented using
managers from all parts of the organization
The purpose of management by objectives (MBO) is to ______ subordinates.
motivate
Management by ______ is a four-step process in which managers and employees jointly set objectives, develop action plans, review performance, and appraise and reward employees.
objectives
The _______ process helps us to cope with uncertainty by formulating future courses of action designed to help achieve specified results.
planning
The purpose of ______ is to set goals and decide on the courses of action that will be used to achieve them.
planning
Three benefits of ___________ are that they can provide a company with direction and momentum, encourage new ideas, and help the company develop a sustainable competitive advantage.
planning and strategic management
The "measurable" aspect of a SMART goal refers to its ability to be _____.
quantified
Long-term goals (select all that apply)
span one to five years, are also referred to as strategic goals, and focus on achieving strategies in the company's strategic plan
A _____ plan is developed for activities that occur repeatedly over time.
standing
A(n) ________ provides a guide for a company's long-term goals.
strategic plan
According to management scholar Gary Hamel, companies like Apple have succeeded because their spirit of _____ has allowed them to reinvent the basis of competition within an existing industry.
strategy innovation
What three groups should be involved in the strategic management process?
top managers, first-line managers, and middle managers
A company's values statement expresses which of the following things? (select all that apply)
what its products contribute to the world, the company's core priorities, what the company stands for, and the values its employees embody
Without having a plan in place, managers may focus only on _____ instead of keeping a long-range view and anticipating new opportunities.
whatever is in front of them
What is the usual span of time for a tactical goal?
12 months
Tactical planning
6 months to 24 months
The management team gave the IT department until October 15 to complete the software installation. Which aspect of SMART goals does this deadline demonstrate?
Target dates