Ch. 5: Planning the Foundation of Successful Management

In what time frame does Tactical Planning apply?

1 week to 52 weeks

In what time frame does Strategic Planning apply?

1 year to 5 years

What are some characteristics of SMART goals?

1. Attainable 2. Specific 3. Target Dates 4. Measurable

What four areas does a company need to stay ahead in in order to gain a sustainable competitive advantage?

1. Being responsive to customers 2. Innovating 3. Quality 4. Effectiveness

What steps make up the control portion in the planning/control cycle?

1. Control the direction by comparing results with the plan 2. Control the direction by taking corrective actions

What are the two ways of taking corrective actions used in Step 4 of the Planning/Control Phase?

1. Correcting Deviations in the plan being carried out 2. Improving future plans

What are some advantages of establishing deadlines?

1. Deadlines provide a mechanism for giving ourselves feedback 2. Deadlines are a great motivator 3. Deadlines help concentrate the mind to help you make quick decisions

What are the four steps of the planning/control cycle.

1. Make the plan 2. Carry out the plan 3. Control the direction by comparing results with the plan 4. Control the direction by correcting deviations and/or improving future plans

List the four steps of the Planning/Control Phase.

1. Make the plan 2. Carry out the plan 3. Control the direction by comparing results with the plan 4. Control the direction by taking corrective action

Name three types of standing plans.

1. Policy 2. Procedure 3. Rule

Name two single-use plans.

1. Program 2. Project

What are three reasons that an organization should adopt planning and strategic management?

1. Provide direction and momentum 2. Encourage new ideas 3. Develop a sustainable competitive advantage

What are the three cascading objectives involved with MBO?

1. Top Management must be committed 2. It must be applied organization-wide 3. Objectives must "Cascade"

In what time frame does Tactical Planning apply?

6 months to 24 months

Defines the course of action needed to achieve the stated goal

Action Plan

A SMART goal is one that is specific, measurable, ______, result-oriented, and has specific target dates.

Attainable

Goals that are challenging but are realistic and achievable within the scope of the resources available satisfy which aspect of SMART goal criteria.

Attainable

Outline the need the firm will fill, the operations of the business, it components and function, as well as the expected revenues and expenses

Business Model

A document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success.

Business Plan

Objectives down through the organization; that is, objectives are structured in a unified hierarchy becoming more specific at lower levels of the organization

Cascading

What is a representative description of a company's strategy?

Educated Guess

True or false: Action Plans may only be developed for individuals.

False

True or false: Rather than ask her assembly line management team about the purchase of new equipment, Kerri decided to go ahead and make the purchase. She feels that as the executive director of operations, she has the authority to make this type of decision without consulting other managers in the organization. This is an example of strategic management.

False

Which level of management is associated with Operational Planning?

First-line Management

A specific commitment to achieve a measurable result within a stated period of time

Goal or Objective

Why is planning important to a company?

It helps deal with the unknown

What is the first step int he planning/control cycle?

Making the plan

______ is a four-step process in which managers and employees jointly set objectives, develop action plans, review performance and appraise and reward employees.

Management by Objectives

A four-step process in which managers and employees jointly set objectives for the employee, managers develop action plans, mangers and employees periodically review the employee's performance, and the manager make a performance appraisal and reward the employee according to results

Management by Objectives (MBO)

What is the first step in management by objectives?

Managers and employees jointly set objectives for the employee

Management by objectives (MBO) is a process that include:

Managers inform employees of their individual goals

Because in the chain of management (operational, tactical, strategic) the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends

Means-End-Chain

One goal of the Amtrak rail service is to have at least 90% on-time rates. Which aspect of the SMART goal does this 90% on-time rate represent?

Measurable

Tactical planning is performed by ______ management, who determine what contributions their departments or work units can make toward the organization's strategic priorities during the next 6 to 24 months.

Middle

Which level of management is associated with Tactical Planning?

Middle Management

An organization's purpose or reason for being

Mission

During the meeting with the board of directors, the president reviewed the company's ______ when he said "The Charter Bank provides low-cost loans to start-up businesses in the seven county area."

Mission Statement

Expresses the purpose of the organization

Mission Statement

The ______ expresses the purpose of an organization.

Mission Statement

The purpose of MBO is to ______ rather than control subordinates.

Motivate

Typically designed for a one-year period, defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, and market share

Operating Plan

______ planning is performed by first-line managers.

Operational

Set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals

Operational Goals

First-line managers are typically responsible for performing _______ within the organization, in which they determine how to accomplish specific tasks with available resources within the next year.

Operational Planning

Setting goals and deciding how to achieve them; Coping with uncertainty by formulating future courses of action to achieve specified results

Planning

Has two planning steps (1 and 2) and two control steps (3 and 4)

Planning/Control Phase

A standing plan that outlines the general response to a designated problem or situation

Policy

A standing plan that outlines the response to particular problems or circumstances

Procedure

A single-use plan encompassing a range of projects or activities

Program

A single-use plan of less scope and complexity than a program

Project

Goals that establish the "end goal" or the desired outcome, rather than the activities or tactics to achieve it, meet which characteristic of a SMART goal?

Results-Oriented

A standing plan that designates specific required action

Rule

A goal that is Specific, measurable, Attainable, Results-oriented, and has Target dates.

SMART goal

Plans developed for activities that are not likely to be repeated in the future

Single-Use Plans

Plans developed for activities that occur repeatedly over a period of time

Standing Plans

Which steps in the planning/control cycle are considered planning steps?

Step 1 and Step 2

Set by and for top management and focus on objectives for the organization as a whole

Strategic Goals

A process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

Strategic Management

Lizette works for a soda bottling company and is developing a five-year plan that shows the long-term goals of the organization. Lizette is in the process of ______.

Strategic Planning

A large-scale action plan that sets the direction for an organization

Strategy

Nordstrom has committed to providing a large shoe department in its stores and customers know they can find any type of shoe they want when they shop there. This is an example of a large-scale action plan that sets the direction for Nordstrom stores. It is an example of a company ______.

Strategy

Set by and for middle management and focus on the actions needed to achieve strategic goals

Tactical Goals

Which level of management is associated with Strategic Planning?

Top Management

A long-term goal describing "what" an organization wants to become. It is a clear sense of the future and the actions needed to get there.

Vision

Expresses what the organization should become, where it wants to go strategically

Vision Statement

The ______ answers the question, "what do we want to become?" and provides a clear sense of the future and the actions needed to get there.

Vision Statement

What is the third stage of the four-step process known as management by objectives?

You and your manager meet to review progress