Management320 - Chapter 5

Which of the following are the steps that make up the planning portion in the planning/control cycle?

-Carry out the plan -Establish the plan

Match the type of planning with the time frame to which it applies: Strategic planning Tactical planning Operational planning

1-5 years 6 months to 24 months 1 week to 52 weeks

Planning/Control Cycle Model

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

Place the steps of the planning/control cycle in the correct order, with the first step listed at the top and the final step listed at the bottom.

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

A goal is _____.

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

Mr. Jones, the department manager, told his employees that he wanted them to write down their work goals for the year. To help his workers achieve their stated goals, the next thing that he should ask for are each worker's ____.

Action plan

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

Attainable

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(n) _______________.

Business plan

The operating plan defines how the action plan will be conducted. Which of the following would be found in the operating plan?

Cash flow Market share Revenues

An organization's ability to produce goods or services more effectively than its competitors is referred to as its _________________.

Competitive advantage

Within the strategic management process, operational is typically done by ________________ managers.

First-line

A/an _________________ is a specific commitment to achieve a measurable result within a stated period of time.

Goal

________________ 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

What is the first step in management by objectives?

Manager and employees jointly set objectives for the employee.

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

As a general rule _______________ managers establish tactical goals and focus on the actions needed to achieve the strategic goals of the organization.

Middle

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

The _____________ statement expresses the purpose of an organization

Mission

Levels of Management Planning

Mission Statement - Professional Quality Vision Statement - Potential Strategic Planning - Growth Tactical Planning - New Lures Operational Planning - Streamlining

Quality Vacuum has been manufacturing excellent vacuum cleaners for over 50 years. In the employee break room is a banner that reads, "We will always provide the highest-quality vacuums at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders." This statement is Quality Vacuum's ____.

Mission statement

Which of the following is an example of a company's vision statement?

Molly laid out a three-step plan to guide the decisions her cosmetic company should make in order to achieve higher sales in two months.

________________ helps an organization prepare for situations that might occur.

Planning

A standing plan that outlines the general response to a designated problem or situation is a(n) _____.

Policy

What is the term for a standing plan that outlines the general response to a designated problem or situation?

Policy

Standing Plans

Policy - Outlines general response to a designated problem of situation Procedure - Outlines response to particular problems or circumstances Rule - Designates specific required action

At ABC Flowers, customer service personnel must document complaints on the appropriate database, contact the customer within 24 hours and attempt to resolve the issue. They must then create a status report of the complaint with the action taken, copying the department manager and maintaining the report on file for 90 days. This is an example of a ________.

Procedure

Which of the following are the steps that make up the control portion in the planning/control cycle?

-Control the direction by taking corrective actions -Control the direction by comparing results with the plan

For management by objectives to be successful, which of the following must occur?

-It must be applied organizational wide -Top management must be committed -Objectives must cascade through the organization

Which of the following are examples of action plans?

-Marketing plan -Sales plan

Improvement objective Maintenance objective Personal development

Decrease scrap materials by 10% within the next quarter. Continue current production rates on custom-printed jobs. Attend time management training

During his review process, Ron's manager gave him a list of goals he wanted him to achieve over the next six months. Ron was surprised to see some of the goals because his manager had never discussed them with him. Which part of MBO did Ron fail to achieve?

Jointly set objectives

Which of the following would meet the SMART goal characteristic of specifying a target date?

Lose 10 lbs. by the end of the month File tax return by April 15th

In the MBO process, cascading objectives are structured in a unified hierarchy in that they become more specific at _____________ levels of organization.

Lower

First-line managers establish _____________ goals, which are concerned with short-term matters associated with the accomplishment of tactical goals.

Operational

_______________ planning is performed by first-line managers.

Operational

What are the three types of goals used in planning that become the hierarchy for the means-end chain?

Operational Strategic Tactical

Donna is the service desk coordinator in a department store, and she has set a goal this month of finishing her daily office work quicker so she can assist at the Service Desk earlier in the morning. She knows this will also help decrease theft, which will assist the company in achieving its goal of decreasing costs. Donna's goal of finishing her office work quicker is a(n) _____.

Operational goal

Setting goals and deciding how to achieve them is the definition of ____.

Planning

A(n) ___________ is a single-use plan encompassing a range of projects or activities.

Program

A project is an example of which type of plan?

Single-use

An organization's ____________ plan is developed by its middle managers, who determine what contributions their departments or work units can make toward the organization's strategic priorities and policies.

Tactical

What is the third step in management by objectives?

The manager and employee periodically review the employee's performance.

What is the second step in management by objectives?

The manager develops an action plan.

Which level of management is typically responsible for establishing strategic goals?

Top Management

The _______________statement 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

A mission statement addresses which one of the following questions?

What is our reason for being?

The final step in management by objectives involves ________________.

the manager making a performance appraisal and rewarding the employee according to the results.

Identify the advantages to establishing deadlines.

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

Which of the following are specific reasons why organizations should adopt planning and strategic management?

-It provides direction and momentum. -It encourages new ideas -It helps the firm develop a sustainable competitive advantage

Which of the following would be included in a firm's business model?

-The industry the firm is entering -The firm's expected revenues and expenses

T/F: A business plan is a tool used by the federal government to determine how to strengthen the business sector through macroeconomics and microeconomics.

False

Corey is preparing the business model for his necktie manufacturing facility. Which of the following should he include?

How the neckties will be marketed

A music teacher asked her students to set a really hard goal, such as increasing your practice time by 10 hours per week, which would cause her students to stretch beyond what they think is possible, this is known as a(n) __________________.

Stretch goal

T/F: A goal is a specific commitment to achieve a measurable result within a stated period of time.

True

T/F: To start work every day, David sits down and sets his goals for the day and then he decides how to achieve them, formulating future courses of action to achieve the specified results. This is the definition of planning.

True

A declaration that expresses what the organization should become and where it wants to go strategically is its ____.

Vision statement

T/F: The planning/control cycle is an order planning system in which employees work with customers to plan orders and discuss delivery times.

False

T/F: There is little proof that writing out goals helps an individual feel more confident and energetic when entering a new group.

False

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

Operational

Single-use Plans

Program - Encompasses a range of project or activities Project - Has less scope and complexity than a program

An organization should adopt planning and strategic management to ____.

Provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage

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 action, such as "Hardhats required beyond this point" is known as a __________.

Rule

Thomas, the fire chief, told his employees to "Think big and endeavor to be more detailed and caring while at work and in setting goals. Therefore, when you give me your goals, I want them to be specific, measurable, attainable, results-oriented, and have target dates." Thomas was asking for his workers' _____.

SMART goals

In the __________ step of the MBO process, managers prepare an action plan for attaining identified objectives.

Second

Even though they would only use the new paint on one set of production models, the company trained the four employees how to use the paint properly. The training of these employees is an example of a __________ plan.

Single-use

Which of the following are characteristics of SMART goals?

Specific Attainable Measurable Target dates

SMART Goals

Specific - Goals cannot be vague Measurable - Goals should be made quantifiable in some way Attainable - Goals should certainly challenge, but should also be do-able Results-oriented - Goals should be linked to the organization's mission Target dates - Provide a clear time frame for completion

Examples of SMART Goals

Specific - Sandy tells her student workers that she wants them to increase their data entry to a point where they are entering 10 complete files per hour. Measurable - Paul tells his employees that he expects them to create 3 tag lines per hour when they are at their desks. Attainable - Amber goes a little overboard in her own workouts. Recently she told her personal training clients that she wanted them to increase the weight they are lifting by 100%. Results-oriented - Nancy asks her secretaries to keep their workspace neat and tidy - she likes to have a neat office. Target Dates - Chris gave his department 3 months to work on and implement a cost reduction program.

A goal that is too vague, lacks detail, and is too general is missing which aspect of SMART goal criteria?

Specificity

_____________ plans are plans developed for activities that occur repeatedly over a period of time.

Standing

Types of Plans

Standing plan - For activities that occur repeatedly over a period of time Policy - Outlines general response to a designated problem or situation Procedure - Outlines response to particular problems or circumstances Rule - Designates specific required action Single-use plan - For activities not likely to be repeated in the future Program - Encompasses a range of project or activities Project - Has less scope and complexity than a program

A _____________ plan is developed for activities that occur repeatedly over time, whereas a __________ plan is developed for activities that are not likely to be repeated in the future.

Standing; single-use

Which type of planning determines what an organization's long-term goals should be for the next 1-5 years with the resources it expects to have available?

Strategic

Planning and Strategic Management

Strategic Management Process 1. Establish the mission and vision 2. Assess the current reality 3. Formulate the grand strategy & strategic, tactical & operational plans 4. Implement the strategy 5. Maintain strategic control

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

T/F: Alex, a district manager for a retail hardware store, asked his store managers for their store goals next year. Denise, one of the store managers, said, "I am going to increase my market share significantly next year by visiting businesses." Alex then responded to Denise with "Precisely how much are you going to increase your market share and by what date?" Alex is asking Denise to formulate a SMART goal.

True

T/F: Don, a middle manager for a large restaurant chain, received an e-mail from the CEO outlining the new goal of decreasing company costs over the next three years. This is an example of a strategic goal.

True

T/F: In the office of every general manager of Relaxing Hotel there is a small poster that reads, "We want to become the only place our customers want to stay for the night while traveling." This is the vision statement for Relaxing Hotels.

True

T/F: Prior to opening his business, Sal, the owner of The Italian Kitchen, is writing a document that explains the reason for his business. This statement would be a part of his mission statement.

True

T/F: Strategic management is a process in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization.

True